Singaporean player bringing Norwegian and African offshore oil & gas assets under one roof

Rex International Investments, a subsidiary of Singapore’s Rex International Holding Limited, has signed a deal with Monarch Marine Holding and Peter M. Steimler to combine the oil and gas portfolios of two affiliates into a new joint venture (JV) established in Norway.

The JV will enable the three companies to merge their stakes in licenses offshore Norway and Africa, held through Norway’s Lime Petroleum and the British Virgin Islands-incorporated Porto Novo Resources, under a single entity.

Rex owns 91.65% of Lime Petroleum, which has interests in offshore licenses in Norway. Additionally, the Singaporean firm has a 67.9% stake in Porto Novo Resources, coupled with Monarch’s 29.1% interest and Peter M. Steimler’s 3%.

Porto Novo Resources owns and operates offshore oil and gas assets in Africa. The firm is the 100% owner of Akrake Petroleum, which revealed its plan to redevelop and restart production at Block 1 at Sèmè Field in Benin late last year.

The Singaporean player claims that it wants to leverage Lime Petroleum’s access to the Norwegian bond market to raise funds for refinancing its existing bond, and for exploration, development, and production activities and general working capital in Norway and Africa, as more and more banks are said to be moving away from financing fossil fuel companies.  

The partners intend to purchase shares in a shelf company in Norway, which will be the JV, with Rex agreeing to buy 25,122, Monarch 4,422, and Peter M. Steimler 456 shares. The aggregate purchase price for the shelf company will be NOK50,000, or around $4,677.50. As the shelf company they wish to buy was previously dormant and not engaged in business activities, Rex believes this is more expedient than incorporating a new one. 

The JV will become an indirect subsidiary of the company held through Rex International. Following the purchase, Rex Group will contribute all of its shares in Lime Petroleum and Porto Novo Resources to the JV, with the two remaining shareholders contributing all of their shares in Porto Novo Resources.

The remaining shares in the new company will be redistributed in a way required for Rex to maintain an 83.74% interest, Monarch 14.74%, and Peter M. Steimler 1.52%. The ratio is said to be proportional to the aggregate of the reserves, based on external reports and estimates, and relative shares in the Norwegian and British Virgin Island firms to be contributed by each partner under the deal.

The agreement, signed on June 18, 2024, foresees the completion of investments in the JV within 90 days of its date or at another date set by Rex. Upon completion, the Rex group’s effective interests in Lime Petroleum will be reduced to 76.75%, while its stake in Porto Novo Resources will increase to 83.74%. 

The Singaporean player’s other subsidiary, Masirah Oil, recently started a multi-well drilling operation at a field off the coast of Oman using the Energy Emerger jack-up rig it hired a month prior. The drilling program is expected to last approximately 90 days.