Kudu investors face change of ownership

CAPE TOWN – Energy Africa’s renewal of its cautionary announcement on Monday about a potential change of ownership further heightened speculation about who the aspirant new owners could be.

Sources said stakes were high that a black empowerment deal could be on the cards, making this one of the many empowerment deals expected over the next few months as the oil industry scrambled to live up to its promises to increase black involvement in an industry so far dominated by multinationals and white-owned local companies. Market speculation puts Mvelaphanda Resources, led by Tokyo Sexwale, as one of the front runners to secure this mouthwatering deal.But some hoped this would not involve the “empowerment” of black groups already in the industry at the expense of smaller, more community-based groups.The issue of finance would, however, be crucial to the outcome, they said.Energy Africa yesterday renewed its first cautionary announcement released on November 20 that parent company Engen was “still engaged in the process which, when concluded, may lead to a change in control of the company”.Shareholders were therefore advised to “continue exercising caution when dealing in the company’s securities until a further announcement is made”.The oil and gas exploration arm of Engen, Energy Africa, has had a rough ride in the boardroom and out in the field in recent years.In 2002, founder and managing director John Bentley left the group after a spat about the need for Petronas to dilute its shareholding to increase liquidity and boost the share’s rating.He went on to form Osprey Oil, a company some said he hoped to model on Energy Africa.Although mainly active in offshore oil field exploration and development work, Energy Africa invested heavily in the Kudu gas field project off Namibia.But late last year international partner Chevron Texaco announced it was withdrawing from the Kudu project, which it regarded as technically viable but not a key feature of its African operations.Energy Africa has taken a 90 per cent interest in the field, with Namibian state oil company Namcor taking the remaining 10 per cent stake.The Kudu gas field is about 170km offshore from Oranjemund.Energy Africa is 65,2 per cent owned by Malaysia’s government-owned oil giant, Petronas, and its subsidiary, South African-based oil group Engen.It is active in the North Sea but most of its production comes from the African continent, involving countries such as Equatorial Guinea, Gabon and South Africa.Late last year, Energy Africa forecast a 3,3 per cent decline in its average oil production rate for the full financial year to March 2004, to 21 500 barrels per day (bpd) from 22 240 bpd a year earlier, due largely to the problems it has encountered with its production at the Ceiba field offshore Equatorial Guinea.On Tuesday the share price lost 50 cents at R44,50, with higher oil prices, given the cold northern weather, playing an important role.-Business Report, own reporterMarket speculation puts Mvelaphanda Resources, led by Tokyo Sexwale, as one of the front runners to secure this mouthwatering deal. But some hoped this would not involve the “empowerment” of black groups already in the industry at the expense of smaller, more community-based groups. The issue of finance would, however, be crucial to the outcome, they said. Energy Africa yesterday renewed its first cautionary announcement released on November 20 that parent company Engen was “still engaged in the process which, when concluded, may lead to a change in control of the company”. Shareholders were therefore advised to “continue exercising caution when dealing in the company’s securities until a further announcement is made”. The oil and gas exploration arm of Engen, Energy Africa, has had a rough ride in the boardroom and out in the field in recent years. In 2002, founder and managing director John Bentley left the group after a spat about the need for Petronas to dilute its shareholding to increase liquidity and boost the share’s rating. He went on to form Osprey Oil, a company some said he hoped to model on Energy Africa. Although mainly active in offshore oil field exploration and development work, Energy Africa invested heavily in the Kudu gas field project off Namibia. But late last year international partner Chevron Texaco announced it was withdrawing from the Kudu project, which it regarded as technically viable but not a key feature of its African operations. Energy Africa has taken a 90 per cent interest in the field, with Namibian state oil company Namcor taking the remaining 10 per cent stake. The Kudu gas field is about 170km offshore from Oranjemund. Energy Africa is 65,2 per cent owned by Malaysia’s government-owned oil giant, Petronas, and its subsidiary, South African-based oil group Engen. It is active in the North Sea but most of its production comes from the African continent, involving countries such as Equatorial Guinea, Gabon and South Africa. Late last year, Energy Africa forecast a 3,3 per cent decline in its average oil production rate for the full financial year to March 2004, to 21 500 barrels per day (bpd) from 22 240 bpd a year earlier, due largely to the problems it has encountered with its production at the Ceiba field offshore Equatorial Guinea. On Tuesday the share price lost 50 cents at R44,50, with higher oil prices, given the cold northern weather, playing an important role.-Business Report, own reporter