Dutco Energy has entered into an option agreement with Serinus Energy to acquire stake in Block L in Brunei

Dutco Energy Limited, a division of the Dubai-based Dutco Group, has entered into an option agreement with Serinus Energy, Inc. to acquire a stake in Block L in Brunei. Serinus Energy currently holds a 90 per cent stake in Block L, through its indirect, wholly owned subsidiaries – Kulczyk Oil Brunei Limited (40 per cent) and AED South East Asia (50 per cent). As per the option agreement, Dutco Energy has the right to acquire 5 to 15 per cent stake that belongs to Serinus Energy in the block. As a consideration, Dutco Energy will be required to offer Serinus Energy a secured credit facility of $15 million for 12 months, at an interest rate of 12 per cent per annum. The transaction is subject to the approval of Brunei National Petroleum Company Sendirian Berhad (PetroleumBRUNEI), which is serving as the regulator of Block L, and the pre-emptive rights of the block’s existing partners. The transaction will enable Dutco Energy to pursue new oil and gas opportunities in Brunei.