MUSCAT: Leading Australian energy firm Roc Oil Company Pty Ltd (ROC) has announced its intention to acquire Swedish-based Tethys Oil AB, a key investor in Oman’s upstream oil and gas sector, for a cash consideration of around $180 million.
Tethys Oil, which currently holds interests in onshore Blocks 3&4, Block 49, Block 56 and Block 58 in the Sultanate of Oman, has endorsed the offer with a strong recommendation to shareholders to accept ROC’s all-cash proposal. Tethys’ shareholders have been offered 58.70 Swedish Krona (SEK) in cash per share, which amounts to a total value of 1.894 billion SEK (approx. $180 million) for all outstanding shares in Tethys Oil.
An offer letter from ROC is expected to be published around October 25, 2024, giving Tethys shareholders until around December 2, 2024 to accept the proposal. Final ratification of the deal is however subject to approvals from Oman’s Ministry of Energy and Minerals, among other national authorities in countries where Tethys Oil and ROC have interests.
Giving his thumbs-up to the offer, Per Seime, Chairman of Tethys, said: “The Board of Tethys now concludes the strategic review initiated in February. Following the careful consideration of several attractive proposals, the Tethys independent bid committee of the board is very pleased to today announce its unanimous recommendation of ROC’s all-cash offer.”
Lei (David) Teng, Chairman of ROC, commented: “We believe the all-cash Offer is a compelling outcome of Tethys’ strategic review and presents Tethys’ shareholders with an opportunity to realise value at a very attractive premium. Tethys is a unique independent company with quality assets that are an excellent fit with ROC’s existing portfolio. Transitioning to a larger operator would enable Tethys’ business to realise its full potential as we see opportunities for new investments into prospects and development of discoveries. The proposed acquisition also aligns with our long-term strategy, to grow profitably in core upstream areas, expand our footprint in strategically important energy regions and commercialise large undeveloped oil and gas resource bases.”
The acquisition, once formalised, will herald ROC’s maiden foray into the Middle East energy sector. Headquartered in New South Wales (Australia), ROC has a presence in China and South-East Asia, besides Australia. The company operates across the full range of upstream business activities from exploration and appraisal to development and production delivery.
ROC generated sales of $249 million in 2023, supported by strong production from its core assets, which averaged 17,155 barrels of oil equivalent per day (boepd) for 2023. During the first half of 2024, ROC's strong operating performance continued with production averaging 22,059 boepd and sales revenue of $110 million.
Stockholm-headquartered Tethys has a 30 per cent non-operating stake in Blocks 3&4 in eastern Oman, which is its flagship asset accounting for almost all of its current hydrocarbon production from Oman. It also owns and operates the exploration Blocks 49 and 58 located in the south of the country, as well as the exploration Block 56 which it operates with a 65 per cent ownership stake.
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