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dinburgh-based oil and gas explorer Bowleven is set to acquire stakes in two Tanzania gas projects for up to $28 million (£18.3m).

The Africa-focused group said the proposed deal was in line with its strategy of concentrating on opportunities in Africa that “have the potential to create material shareholder value, whilst maintaining a robust balance sheet and strong capital discipline”.

It has signed a conditional heads of terms with Aminex to buy a 25 per cent interest in the Kiliwani North Development Licence, which is soon to begin production, along with a 50 per cent interest in the “highly prospective” Ruvuma petroleum sharing agreement.

Bowleven chief executive Kevin Hart said: “The decision to enter into this heads of terms with Aminex follows the extensive screening of a large number of opportunities in Africa.

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“Consistent with the group’s strategy, the deal affords Bowleven the opportunity to participate in highly attractive production and material appraisal/exploration assets without compromising its robust balance sheet and strong capital discipline.”

As at 31 October, the Aim-quoted group had a cash balance of about $120m and no debt

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Hussein Boffu is a business consultant with experience in the oil and gas(energy)industry, business strategy development, business planning, research, due diligence, sales and marketing, project coordination, supplies and equipment procurement. He has a passion to help entrepreneurs and businesses in the energy sector to build, grow, and develop sustainable, profitable enterprises. So that they can create more employment and provide a good life for their families, employees, and communities. He can be reached via Hussein.Boffu@Tanzaniapetroleum.com or Text/Call/WhatsApp +255(0)655376543

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