Shares in Bowleven jumped by more than 20 per cent this morning after the Edinburgh-based oil explorer signed a deal with Petrofac that will see the FTSE 100 energy services firm pump $500 million (£313m) into developing oil fields in Cameroon.
The pair aims to have first production from the Etinde permit in 2016, with Petrofac supplying engineering, design and project management personnel.
N+1 Singer analyst Jack Allardyce said: “The deal should help alleviate funding concerns and validate Etinde project in the eyes of investors.”
Kevin Hart, chief executive at Bowleven, added: “I am very happy that Bowleven, through our subsidiary Euroil, is entering into a proposed strategic alliance with Petrofac in respect of our planned Etinde phased development.
“This complementary union provides Bowleven with potential access to both investment capital and, just as importantly, Petrofac’s extensive development experience. Petrofac’s excellent track record of service provision, including training, will augment significantly Euroil’s strong local presence and capability.
“Our alliance with Petrofac will help deliver first production from our Etinde project, and represents a major step towards our goal of converting resources to reserves in Cameroon.”