(Alliance News) - Scirocco Energy PLC on Monday said it received Tanzanian ministerial approval to divest its stake in Ruvuma petroleum sharing contract in south-east Tanzania.
The investing company targeting assets within the European sustainable energy and circular economy markets said the Tanzanian Ministry of Energy approved Scirocco's planned divestment of its 25% stake in Ruvuma.
With this approval now received, Scirocco said all conditions were now satisfied for the transaction with ARA Petroleum Tanzania, meaning it can now proceed to completion "in the coming weeks".
The deal with ARA Petroleum Tanzania was first agreed in August 2022, and has been subject to long stop date extensions recently, the latest being on Thursday last week running until October 2020.
"Ministerial approval brings us one step closer to the impending completion of this transformative transaction, and we are grateful to the Tanzanian authorities for their support. This is a watershed moment for the company that completes Scirocco's evolution from an investor in diverse hydrocarbon assets into an investor into cash-generative assets within the European sustainable energy and circular economy markets," said Chief Executive Officer Tom Reynolds.
"We see a broad range of opportunities in these markets providing scope for low-risk, sustainable returns. We look forward to announcing completion of this long-awaited divestment in the coming weeks."
Shares in Scirocco Energy were up 14% to 0.49 pence each in London on Monday late morning.
By Greg Rosenvinge, Alliance News reporter
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Scirocco Energy (SCIR)