Canada-based oil and gas company Petromanas Energy
said Royal Dutch Shell will acquire a further 25% participating interest in
Albanian Blocks 2-3 in exchange for total consideration of some $22 million
(16.8 million euro) under an amended definitive farm out agreement between the
two companies.
Shell will further farm into Petromanas’ exploration rights on Blocks 2-3,
comprising some 852,000 gross acres onshore
Albania
,
Petromanas said in a press release on Monday.
The Canada-based company expects that the agreement will result in a reduction
of its net cash outflows by more than $60 million over the next two years.
The agreement, effective since June 1, is subject to customary closing
conditions including the receipt of all necessary regulatory and government
approvals.
In May 2012 Petromanas completed a definitive farm out agreement on the
exploration of the Albanian blocks with a wholly-owned subsidiary of Royal
Dutch Shell, under which Shell acquired a 50% participating interest in the
blocks in exchange for payments and carried costs up to $50.3 million.