30 January 2013 03:36 [Source: ICIS news]
SINGAPORE (ICIS)--Hong Kong-headquartered Pearl Oriental Oil announced on late Tuesday that it has signed a cooperation agreement with UK’s Levant Energy to acquire the British firm’s oil and gas assets in Russia.
Under the agreement signed on 17 January, Pearl Oriental Oil said it has been granted exclusive rights to acquire a majority stake from a Levant-controlled target company, which owns substantial oil and gas fields in Russia.
The Levant subsidiary, which has approximately 200m barrels of proven and probable oil reserves, has a net present value of over $850m (€629m), according to the statement.
Pearl Oriental Oil would have to pay Levant a refundable down payment of $5m within seven days of signing the cooperation agreement to carry out the acquisition.
Both companies have not decided on the percentage ownership in the target company or other conditions of the potential acquisition.
However, a formal sale and purchase agreement is expected to be signed before 17 March, Pearl Oriental Oil said.
($1 = €0.74)
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