SNC Incorporated is pleased to announce its role as legal counsel for Reconnaissance Energy Africa Ltd’s (ReconAfrica) in the strategic farm down transaction with BW Energy Limited which is valued at U$16 million. The transaction involved the assignment of a 20% working interest in Petroleum Exploration Licence Number 73 (PEL 73), currently operated by ReconAfrica, which transaction was subject to various regulatory approvals and conditions precedent.
SNC Incorporated provided strategic legal and business advisory to ReconAfrica by facilitating the transaction to completion and ensuring compliance with all regulatory stipulations.
SNC Incorporated, working together with Park Energy Law, drafted, reviewed and negotiated the farm-out agreement between ReconAfrica and BW Energy, this included conducting an initial review of the Farm Out Agreement from a Namibian Law perspective, as well as engaging NAMCOR on behalf of ReconAfrica as it pertains to NAMCOR’s pre-emption rights. SNC Incorporated further drafted the Deed of Assignment, Novation and Amendment to the Joint Operating Agreement and the Petroleum Agreement which was eventually approved by the Minister of Mines and Energy for Namibia.
The firm also advised the client on whether the transaction qualified as a merger in Namibian law, which advice included making various submissions to the Namibia Competition Commission (NaCC) as it pertains to the requirements of whether the transaction was notifiable and successfully obtained the required clearance from NaCC.
As legal advisors working on the transaction, SNC Incorporated ensured that all aspects of the farm-down agreement complied with Namibian laws, including advising on commercial negotiations, regulatory approvals and risk mitigation strategies.
SNC Incorporated has built a strong reputation among key stakeholders, including businesses, government bodies and regulatory authorities. Commenting on the deal, SNC Incorporated Managing Partner, Shakwa Nyambe stated, “Our deep understanding of Namibia’s oil and gas and energy regulatory landscape allowed us to facilitate a seamless approval process, avoiding costly transaction delays for our client. We remain committed to delivering strategic legal and business solutions that support business growth and investment in Namibia’s energy sector.”
Following the successful completion of the transaction as approved by the relevant Namibian Regulators, the working interests in PEL 73 is now structured as follows: ReconAfrica (Operator) has 70%, BW Energy 20% and NAMCOR 10%.
