DLA Piper has acted for integrated energy company, Victoria Oil & Gas Plc (VOG), on a complex farm-out arrangement with Bowleven Plc (Bowleven), the Africa focused oil and gas exploration group. The transaction related to the production sharing contract (PSC) for the Bomono Block, Cameroon. 

The Bomono Permit is located in the onshore extension of the Douala Basin. The acreage is characterised by numerous surface oil seeps but is largely unexplored by modern exploration methods.

The farm-out, an assignment of part or all of an oil, natural gas or mineral interest to a third party, will see Gaz du Cameroun Bomono S.A, a wholly owned subsidiary of VOG, take an 80% stake in the Bomono PSC, with Bowleven keeping the remainder and continuing as operator.

DLA Piper advised VOG on the farm-out agreement, royalty arrangements and the structuring of the gas sales / tolling terms.

The transaction was led by Energy partner Charles Morrison, working with associates Lauren Kelsall and Andrew Burleigh.