(Alliance News) - Anglo African Oil & Gas PLC said Tuesday it has signed a USD25 million offtake agreement with an unnamed "international oil marketing and trading company" for the development of the Tilapia field in the Republic of the Congo.
The exploration and development company said financing would allow the company to draw on the funds in advance as a prepayment for barrels to be lifted in the future.
Anglo African said when a deal is signed and the TLP-103C-ST well is brought into production, it will deliver a minimum of 4.5 million barrels of Djeno crude oil to the undisclosed company at a price to be agreed. The company said it will use the funds to further develop Tilapia by drilling further wells and constructing a 7 kilometers pipeline to tie into a nearby export terminal.
Anglo African, which own 56% interest in Tilapia field, said the facility will have a maturity date of December 31, 2022.
James Berwick, chief executive officer, said: "We welcome the opportunity to secure this offtake and prepayment financing for the development of Tilapia, which, in the success case at TLP-103C-ST, avoids the need for further equity financing and subsequent dilution for shareholders as we expand the production capacity of the site."
Anglo African shares were up 3.3% in London at 0.41 pence each on Tuesday afternoon.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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