12 Oct 2015 – Rockhopper Exploration [LON:RKH] is in negotiations with Kuwait Energy to buy a stake in the Abu Sennan concession in Egypt, an official from the Egyptian General Petroleum Corporation (EGPC) told Mergermarket.
Abu Sennan is located onshore in the Abu Gharadig Basin in the Western Desert. Kuwait Energy holds 50% of the block and operatorship. Beach Energy holds 22% and Dover owns 28%. The firms have a production sharing contract with the Egyptian government.
Rockhopper is looking to acquire a 20% stake, the official added.
In April, Kuwait and state-owned national oil company, EGPC, announced discoveries of oil in the Abu Sennan field from its ASH-1ST well. The concession also has 12 producing wells.
Rockhopper declined to comment. Kuwait Energy did not respond to a request for comment.
Rockhopper has not mandated advisers for the deal.
Rockhopper’s CFO, Stewart MacDonald, is ex-Rothschild and proficient on M&A, a sector banker said. It makes sense that the firm has not retained advisers for an acquisition of an asset, he added.
Over the past two years, Rockhopper has shifted its focus to the Mediterranean and North Africa. In August 2014, it complete its takeover of Mediterranean Oil & Gas. Through the acquisition it gained interests in four blocks in the region.
In September, Rockhopper’s Beech Energy takeover attempt fell through when one of the parties of the Abu Sennan joint venture exercised its right of pre-emption.
By Katie McQue