Oil and gas firm that moved HQ from Edinburgh to London makes progress in Cameroon

Oil and gas company Bowleven, which quit Scotland following a boardroom coup, has moved closer to achieving a long-held ambition to bring finds in West Africa into production.

Bowleven has spent years working on plans to develop finds made off Cameroon without managing to finalise a commercially viable plan.

However, the company announced yesterday that oil services heavyweight TechnipFMC has been appointed to complete engineering studies in connection with the proposed development of a gas liquids find on the Etinde licence.

 Bowleven’s chief executive Eli Chahin described the award of the engineering contract as a significant milestone.

He underlined his confidence that it could pave the way to the partners in the Etinde licence making a final investment decision this year to proceed with a development.

This could transform the fortunes of Bowleven, whose shareholders have seen the value of their holdings dwindle in recent years.

Mr Chahin has led Bowleven since shortly after the company’s former chief executive Kevin Hart was voted off the board in March 2017 following a campaign for change led by a rebel investor.

 The new management team decided that Bowleven should focus on the Etinde permit and moved its head office to London from Edinburgh under a plan to cut costs

However, Bowleven cut the valuation of its stake in the Etinde permit by $62 million last year. The move reflected continued uncertainty about the prospects for bringing finds on the acreage concerned into production amid doubts about whether there would be enough demand for any gas produced.

Bowleven received a boost last month when the oartners in Etinde reached an agreement in principle to sell gas from the permit for use in Cameroon.

The signing of a final investment decision in respect of Etinde would put Bowleven in line to receive a $25 million (£19.5m) payment from the partners in the licence under a deal struck by Mr Hart in 2014, before the oil price plunged.

 Worth $250m in total, the deal involved Bowleven selling stakes in Etinde to Africa-focused New Age and Russia’s Lukoil in a deal worth $250m in total.

Bowleven retains a 25% interest in Etinde.

The Aim-listed company currently has a market capitalisation of £20m.

 Shares in the firm traded at closed down 0.03p at 6.2p yesterday. They closed at 33.25p on the day Mr Hart and four other former Bowleven directors were voted off the board.

The Crown Ocean Capital investment business led the campaign that resulted in them being ousted.

Bowleven paid a 15p per shape special dividend last year worth around £50m in total.

That put British Virgin Islands-registered Crown Ocean Capital LP 1 in line for £15m in respect of its 29 per cent stake.

After leaving Bowleven Mr Hart said the company had found a lot of oil and gas during his 10 years in charge but had been frustrated by geopolitical factors.

Source: The Herald