What’s the Kenya Deal worth?? In 2015, AOI farmed out 25% of its Kenya stake to Maersk Oil for US$427 million. Most of the receipts represented re-imbursement for past costs incurred by AOI and accrued costs owed by Maersk to closing date. Additionally, Maersk agreed to carry AOI to $405 million for future development costs upon Final Investment Decision (FID).
Subsequently, Total bought out Maersk in a $7 billion merger and became 25% stake holder in Kenya. Presumably, Total is legally obligated to fund AOI in lieu of Maersk. The Chinese and Total are building the pipeline for the Uganda oil field and have their hands full.
The pipeline and infrastructure costs are estimated to be around. $3.4 billion. The Indian group is in talks to take over Tullow's 50% stake for rumored between $2 to $3 billion.
The deal valuation for AOI might be $1-1.5 billion less the massive development costs.