Nuevo Energy sells offshore Congo permit to Perenco for $62 million

Ray Tyson

Petroleum News Houston correspondent

U.S.-based independent Nuevo Energy, which recently acquired Plains Exploration and Production, has signed an agreement to sell its interest in the Marine 1 Permit offshore the Republic of Congo to state-owned Perenco for $62 million, Nuevo said April 8. The sale would be effective Jan. 1, 2004, and the final sales price would be offset by working capital adjustments and net cash flow from the effective date to the closing date, Nuevo said.

Nuevo has a non-operating 50 percent working interest and a 37.5 percent average net revenue interest in the permit, which includes the Yombo and Masseko fields, and a 50 percent interest in a floating production, storage and off-loading vessel. In 2003, production from the area averaged 4,800 barrels of oil equivalent per day net to Nuevo.

Nuevo’s U.S. domestic producing properties are located onshore and offshore California and in West Texas. The company is the largest independent producer of crude oil and natural gas in California.