Oando Amends Agreement With ConocoPhillips Over Nigerian Oil, Gas Deal

(RTTNews) - Oando Energy Resources Inc. (OER.TO) Monday entered into an amendment agreement with ConocoPhillips (COP) in relation to the proposed acquisition by Oando of the Nigerian oil and gas business of ConocoPhillips. Oando also announced the termination of the Brass LNG Purchase Agreement.

The company has indirectly entered into an agreement with ConocoPhillips pursuant to which, amongst other things, it extended the outside date for completion of the proposed ConocoPhillips acquisition from September 19 to November 30.

The company has agreed with ConocoPhillips to terminate the agreement to purchase the shares of Phillips (Brass) Ltd (PBL), which holds a 17% shareholding interest in Brass LNG Ltd. Brass LNG is developing the Brass LNG Project, a large-scale greenfield project to develop a two-train LNG facility in the Niger Delta. The company will no longer have an obligation to pay the purchase price pertaining to PBL of about $198.4 million (after giving effect to purchase price adjustments as of the date hereof).

As previously announced, in connection with the ConocoPhillips acquisition (including the purchase of PBL), the company paid a $435 million deposit, of which $35 million was advanced in connection with the Brass LNG Purchase Agreement.

This deposit will be applied by ConocoPhillips to the purchase agreements pertaining to the acquisition of the balance of the ConocoPhillips Nigerian oil and gas business.

As a result, the net purchase price payable to complete the acquisition of the remaining assets associated with the ConocoPhillips acquisition is estimated to be about $1.22 billion (after deducting the Deposit and giving effect to adjustments as of the date hereof).