18 September 2013, Lagos – In what appears a clear indication of growing investor aparthy over the Brass Liquefied Natural Gas project, Oando Energy Resources, OER, has terminated the Brass LNG purchase agreement and has entered into an amendment agreement with ConocoPhillips, in relation to the proposed acquisition by OER, of the Nigerian oil and gas business of ConocoPhillips.
The company has reached an agreement with ConocoPhillips to terminate the agreement to purchase the shares of Phillips (Brass) Ltd. (PBL), which holds a 17-per-cent shareholding interest in Brass LNG Ltd.
Brass LNG Ltd. is developing the Brass LNG project, a large-scale greenfield project to develop a two-train LNG facility in the Niger Delta. The company will no longer have an obligation to pay the purchase price pertaining to PBL of approximately $198.4-million.
In connection with the COP acquisition (including the purchase of PBL), the company paid a $435-million deposit.
Of the deposit, $35-million was advanced in connection with the Brass LNG purchase agreement. This deposit will be applied by ConocoPhillips to the purchase agreements pertaining to the acquisition of the balance of the ConocoPhillips Nigerian oil and gas business. As a result, the net purchase price payable to complete the acquisition of the remaining assets associated with the COP acquisition is estimated to be approximately $1.22-billion.
The company has indirectly entered into an agreement with ConocoPhillips pursuant to which, amongst other things, it extended the outside date for completion of the proposed COP acquisition from Sept. 19, 2013, to Nov. 30, 2013.