To sell or not to sell: Bowleven weighs options after boardroom row

Following a recent boardroom row, the UK-based oil and gas company Bowleven has launched a strategic review, which might include the sale of its assets or the sale of the entire company. 

Just last week, most of the company’s board was ousted in a vote called for by the Monaco-based activist shareholder, Crown Ocean Capital (COC), which now holds over 23% shares of the oil company.

As a result of the vote during last week’s general meeting, five directors were removed from their positions, including the company’s CEO Kevin Hart. However, the chairman Billy Allan managed to keep his role but COC later requested his removal as well.

In light of these events, Bowleven said on Tuesday it has initiated a strategic review of all options available to the company.

The company further detailed that these options may include farm-out or sale of one or more of the company’s existing assets or a corporate transaction such as a merger with or sale of the company to a third party.

Bowleven is also reviewing the strategy previously proposed by COC which urges focus on the Etinde permit offshore Cameroon and dropping the onshore Bomono permit.

The Etinde permit, which lies in shallow water adjacent to the coast, is operated by NewAge with 30% interest. Bowleven holds 20% interest while the remaining 30% and 20% is held by Lukoil and SNH, respectively.

The joint venture is focused on a field development plan which achieves earliest monetization. According to information available on Bowleven’s website, development options include FLNG, gas-to-power, and other possible solutions including the processing of gas and liquids in Equatorial Guinea using spare capacity with existing infrastructure.

The Final Investment Decision (FID) is planned for 2017.

Offshore Energy Today Staff

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