Vaalco pays $4.5M breakup fee for Angola offshore block

Oil and as firm Vaalco Energy has paid a $4.5 million settlement fee to Angola National Agency of Petroleum, Gas, and Biofuels (ANPG), for offshore block termination.

Photo by Jorge Sá Pinheiro on Unsplash

Vaalco paid the fee under the settlement agreement signed in the first quarter of the year. The settlement finalized the termination of Vaalco’s rights, liabilities and outstanding obligations for Block 5/06 in Angola.

“The Settlement Agreement provided for a cash payment of $4.5 million from Vaalco to the National Concessionaire as well as the elimination of the receivable from Sonangol P&P that was related to joint-interest billings,” Vaalco said,

Cary Bounds, Vaalco’s Chief Executive Officer, commented, “We are extremely pleased to have fulfilled all the terms of our Settlement Agreement to exit Angola and we offer our sincere gratitude to the National Concessionaire for their pragmatic approach to helping us reach this material milestone.

Bounds added: “Finalizing the Settlement Agreement has removed considerable uncertainty over the financial impact of exiting Angola. As we prepare for our upcoming drilling campaign offshore Gabon, we are at an exciting juncture for the Company and remain wholly focused on delivering profitable growth and meaningful value for our shareholders.”