A New York-based energy company Tec CTL, announced last week Friday that it had received a commitment of a total of 20 000 barrels per a day (bpd) from the Botswana governmentÔÇôowned company, Botswana Oil Limited (BOL).
In a statement obtained by The Telegraph, the company says: “This represents approximately 25 percent of the expected average annual production from our total projects, which could generate well above $350 million in annual revenues based on the current oil prices.”
It said that the current average price is around US$40 (about P400) per barrel and a combination of fixed and market-related pricing with attractive floors and ceilings is under discussion in order to secure positive margins in the early years of production.
According to the statement, the parties have agreed to negotiate an off-take agreement over the coming months.
Ogaisitse Khama, Vice-Executive Chairman of Tec CTL, said: “We are extremely pleased to have received this Letter of Commitment with BOL as another step to ensuring the economic success of the Phungula Plant.”
He added that: “We can now go out to the market with great confidence and raise all the necessary capital for the development of our first phase which will be in production within the next 24 months.”
Co-chairman of Tec CTL, Inc, Bernard Yaw said: “We are pleased to have this commitment from BOL in this juncture and believe that our success will be a bell for others in the African market.”
He added that: “Now, we will be able to focus on securing more of these partnerships across Africa until we have secured off-takes for the remaining 60 000 bpd. While we are wild at it, our advisors will be working tirelessly to raise the necessary project financing.”
Tec CTL is a New York-based, vertically integrated United States oil & gas corporation. The company explores, develops and produces oil, gas and chemicals. It owns four projects in Botswana and the same have the capacity to produce a total of 80 000 bpd and seeks to increase through inorganic growth within Africa and elsewhere.
BOL was established to support the government of Botswana to achieve two broad, national economic objectives. These objectives are to ensure the security and efficiency of fuel supply to Botswana and promote active citizen involvement in the petroleum industry.
BOL is wholly owned by the government of Botswana under the Ministry of Mineral Resources, Green Technology and Energy Security, and incorporated under the Companies Act of Botswana.