By Teddy Nwanunobi
San Leon Energy, the independent oil and gas production, development and exploration company focused on Nigeria, on Tuesday, provided the following update in relation to its investment in Energy Link Infrastructure (Malta) Limited (ELI), the company which owns the Alternative Crude Oil Evacuation System (ACOES) project.
Valuechain reports that San Leon Energy Plc, Europe’s leading shale gas company by acreage, is an independent oil and gas exploration company.
The ACOES is being constructed to provide a dedicated oil export route from OML 18, comprising a new pipeline from OML 18 and a floating storage and offloading vessel.
As previously announced by San Leon on August 3, 2020, the company originally invested US$15 million in ELI.
The investment comprised a 10 per cent equity interest in ELI together with a US$15 million shareholder loan with a coupon of 14 per cent per annum over four years, repayable quarterly, following a one-year moratorium from the date of investment.
The first repayment installment from ELI, which amounts to approximately US$2.2 million, has recently become due (the first installment).
San Leon announced on June 24, 2021 that it was considering making further debt and equity investments in ELI, and reaffirmed that intention in subsequent announcements in July 2021.
The company has agreed with ELI that, should these further investments be made, then the first installment will be offset from any investment monies payable to ELI by San Leon under certain of these new arrangements.
Pending any further investment in ELI, the first installment will continue to accrue interest at 14 per cent per annum.
“A further announcement will be made as appropriate,” it added.