As part of this agreement, the parties approved the immediate release to the Gabonese Republic of the $43 million placed in an escrow account in respect of the pre-2018 carrying costs on the Ezanga permit, as well as the payment of a complementary amount of $57 million to the Gabonese Republic.
In return, this agreement allows:
- The signing of an amendment to the CEPP (Contrat d'Exploration et de Partage de Production —Exploration and Production Sharing Agreement) of the Ezanga permit (80% M&P, operator), including in particular changes to certain terms as well as an extension of the exploration period until 2026;
- The signing of new CEPPs for the Kari and Nyanga-Mayombé areas (100% M&P, operator), the exploration periods of which will now run until 2029;
- The implementation of a mechanism for M&P to recover certain receivables over time (which amounted to $98 million at 30 September 2021).
Olivier de Langavant, Chief Executive Officer of M&P, stated:
“This mutually beneficial agreement attests to the strong common desire of the Gabonese Republic and M&P to strengthen their relationship. It highlights the long-term commitment of Maurel & Prom in Gabon and further improves the framework to further develop the Group’s activities in the country. The resumption of the development drilling in July, together with the recent completion of a magnetic gradiometry acquisition campaign covering the whole area of our Ezanga permit, demonstrate this commitment to maximising the potential of our assets”.