Maurel & Prom Strengthening Partnership with Wentworth Resources in Tanzania

Maurel & Prom provided a market update on Thursday regarding its recommended cash acquisition of Wentworth Resources, solidifying its long-term collaboration with the Tanzania Petroleum Development Corporation (TPDC).

The agreement, structured as a call option for TPDC, allows TPDC to increase its ownership by up to 20% in the production interest—a pivotal development in the acquisition process. Maurel & Prom secured the necessary pre-emption waiver from TPDC and obtained Tanzanian government approval, leaving only the final consent from Tanzania’s Fair Competition Commission (FCC) pending.

The acquisition, progressing under the Jersey Companies Law, anticipates the FCC’s approval before the scheduled court sanction hearing on December 19. Post-hearing, Maurel & Prom will officially assume ownership of Wentworth, acquiring its 31.94% direct and indirect interest in Mnazi Bay.

Upon closing, TPDC is expected to exercise the call option, securing a 20% production interest in Mnazi Bay. This arrangement would allocate 60% ownership to Maurel & Prom and 40% to TPDC. The joint operating agreement will be amended to accommodate new partnership conditions, enabling TPDC to appoint secondees for Mnazi Bay field operations.

The acquisition’s funding, supported by £63m in escrow, will see TPDC contributing its portion of the acquisition consideration. Wentworth’s cash balance and winding-down costs will be shared between Maurel & Prom and TPDC.

Olivier de Langavant, CEO of Maurel & Prom, expressed satisfaction with the partnership, emphasizing its role in advancing the development of Tanzania’s natural gas sector. He thanked TPDC and Tanzanian government stakeholders for collaborative efforts in achieving a successful outcome.

As of 1244 GMT, Wentworth Resources shares rose 3.33% to 31p in London, while Etablissements Maurel & Prom shares were up 0.26% in Paris at €5.88.