Bowleven up on Petrofac oil alliance

SHARES in Aim-listed oil and gas explorer Bowleven soared yesterday as it agreed an alliance with Petrofac to develop a project offshore Cameroon.

Petrofac will provide the Africa-focused explorer, through its subsidiary Euroil, with up to $500m (£313m) towards the first stage of development and up to $60m towards well costs to develop the Etinde permit, which is expected to deliver first production in 2016.

In return, Bowleven will pay Petrofac a share of revenue from Etinde.

Chief executive Kevin Hart said yesterday that the alliance provides Bowleven with both access to investment capital and to Petrofac’s “extensive development experience”.

Analysts at N+1 Singer said yesterday that the“reassuring” backing from Petrofac “should help alleviate funding concerns and validate the Etinde project in the eyes of investors”.

Shares rose 7.69 per cent to 80.5p.