Australia’s Kairiki Energy has signed an agreement with its creditor IMC Oil & Gas Investments to divest from its Yilgarn Petroleum Philippines business due to uncertainty over the offshore Palawan contract areas.
The company said that it terminated the binding term sheet with Focus Oil and Gas for the disposal of its entire interest in the petroleum assets.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Yilgarn holds joint venture interests in offshore oil and gas permits in the Philippines, which include service contract 54A with 30.1% participating interest and service contract 54B with 40% interest.
The Philippines Department of Energy (DOE) previously approved a request for a three-year moratorium on service contract 54 from 5 August 2014 to 5 August 2017.
The approval gave time to the joint venture (JV) to study the development of the discovered marginal resources in the block.
The JV should enter sub-phase seven at the end of the moratorium period to drill one well.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataCompletion of the disposal is subject to various conditions, which include the company obtaining shareholder approval for it pursuant to ASX Listing Rule 10.1 and 11.2.
Kairiki also needs to notify other JV partners of the change of control of Yilgarn relating to the joint operating agreement.
The company should also provide its creditor with the proposed work programme and budget from the operator for the current year.
