| Wed 30 Oct 2002, 17:54 | | Petronas International Corporation Ltd - Press Rel |
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Petronas International Corporation Ltd - Press Release
Petronas International Corporation Ltd
(Incorporated in Labuan, Malaysia)
(A wholly-owned subsidiary of Petroliam Nasional Berhad)
Not for release, publication or distribution in or into Australia, Canada or
Japan
ENERGY AFRICA PRODUCTION ESTIMATE DOWNGRADE
1. Background
Petronas International Corporation Ltd ("PICL") controls, directly and
indirectly, 65.3 per cent of Energy Africa Limited ("Energy Africa"), and
intends to consolidate further, and more actively exercise, its control of
Energy Africa.
PICL announced on 5 September 2002 its intention to make a final cash offer to
acquire the entire issued share capital of Energy Africa, other than those
shares already held by Engen Limited, PICL or their concert parties for a final
cash consideration of ZAR43.75 per Energy Africa share (the "Offer"). The Offer
opened on 27 September 2002, the date PICL posted the formal Offer document to
Energy Africa shareholders, and the final and last closing date of the Offer is
12 November 2002.
In the formal Offer document, PICL has detailed the risks inherent (e.g. to
production) in Energy Africa`s operations and in particular the asset-specific
risk associated with Energy Africa`s profound dependence on Equatorial Guinea.
2. Lower production estimates
Energy Africa`s own estimates of its production profile presented in its Offer
response document dated 10 October 2002 are materially lower than those
presented in Energy Africa`s annual results presentation in June 2002:
Estimated average daily production
(barrels per day) (1)
For the period ending 30 June
2003 2004 2005 2006
Results presentation 26,500 34,000 42,000 43,000
(June 2002)
Offer response document 25,000 (2) 28,000 34,000 35,000
(10 October 2002)
Difference -5.7% -17.6% -19.0% -18.6%
Notes:
1) Numbers extracted from graphs and therefore may deviate modestly from
actual numbers.
2) As stated in Energy Africa`s interim results for the six months ended
30 September 2002, which were released on 14 October 2002.
3) Asset-specific risk
PICL`s concerns about Energy Africa`s high exposure to a single asset have been
exacerbated by the production information contained in Amerada Hess
Corporation`s ("Amerada Hess") third quarter results announcement dated 24
October 2002. These results indicate a 19 per cent net quarterly decrease in
production from the Ceiba field in Equatorial Guinea, in which Energy Africa has
a 14.25 per cent interest. In addition, Amerada Hess noted its expectations
that the average production from the Ceiba field for 2003 will be flat relative
to the forecast average production level for 2002. Furthermore, Amerada Hess
stated that the G11 exploration well in Equatorial Guinea, reflected in Energy
Africa`s interim results released on 14 October 2002 as being in progress, was
unsuccessful.
The abovementioned results follow reports on 23 September 2002 that Amerada
Hess` production from the Ceiba field was substantially lower than previously
estimated and that the first oil production from some of the new fields in
Equatorial Guinea would be delayed beyond 2004.
Energy Africa`s dependence on Equatorial Guinea, combined with increased
uncertainty caused by the production downgrades, is of growing concern to PICL.
Johannesburg
30 October 2002
This press release has been approved by Morgan Stanley & Co. Limited of 25 Cabot
Square, Canary Wharf, London E14 4QA, United Kingdom solely for the purpose of
section 21(2)(b) of the UK Financial Services and Markets Act 2000.
Morgan Stanley South Africa (Pty) Limited is acting for PICL in connection with
the abovementioned transaction and no one else and will not be responsible to
anyone other than PICL for providing the protections offered to clients of
Morgan Stanley South Africa (Pty) Limited nor for providing advice in relation
to such transaction.
Date: 30/10/2002 05:49:00 PM Produced by the JSE SENS Department
