RAK Petroleum plc holds 33.33 percent of Foxtrot International LDC.
Foxtrot International, founded in 1994, is a privately held exploration and production company active in Côte d’Ivoire and headquartered in Abidjan, with approximately 207 employees. The Company’s Executive Chairman, Mr. Mossavar-Rahmani, is the Chairman of the Board and co-founder of Foxtrot International. RAK Petroleum plc’s ownership is held through Mondoil Enterprises, LLC, acquired in 2013.
Foxtrot International holds a 27.27 percent stake in and operates offshore Block CI-27, containing the country’s largest reserves of gas produced from four offshore fields tied back to two fixed platforms; sales averaged 183.8 million standard cubic feet per day (“mmscf/d”) of gas in 2020, in addition to 1,483 bopd of oil and condensate. In addition to the Foxtrot gas and condensate field, which began production in 1999, the block contains the Mahi gas field developed in 2012, as well as the Marlin oil and gas field and the Manta gas field which began production in 2016, following a four-year, USD 1 billion development campaign covering the installation of a second offshore platform and drilling of additional wells.
Gas produced in Block CI-27 is transported via pipeline to fuel power stations in Abidjan pursuant to a gas sale and purchase (take-or-pay) agreement put into force in June 1999 and subsequently amended and extended to 2034. On 24 February 2020, the CI-27 joint venture partnership and the government of Côte d’Ivoire signed amendments to their gas sales and purchase agreement and the Production Sharing Contract to extend the term of the agreements for a further 10 years until August 2034 and to increase the price of gas from the date of signature to a minimum of USD 6.00 per million btu while maintaining the indexation formula and the take-or-pay level at 140 mmscfd. In connection with these amendments the CI-27 joint venture partnership has begun spending approximately USD 130 million on new onshore processing facilities and pipelines to supply gas to two new power stations in the country and has embarked on a drilling programme to drill three new wells and side-track two wells in 2021/2022 estimated to cost USD 215 million.
Foxtrot International’s business is much less affected by the volatility in world oil and gas prices than is DNO’s, as the predominant portion of Foxtrot International’s revenue derives from gas sales under a long-term contract price with an indexation formula that is only indirectly and partially tied to world oil prices.
Foxtrot International’s net profit in 2021 was USD 55.5 million or USD 18.5 million to the Company’s interest. After accounting for the Company’s depletion of fair value uplift, the Company’s profit from Foxtrot International in 2021 was USD 16.0 million. In 2021, the Company received USD 20.8 million in cash distributions from Foxtrot International, USD 15.7 million of which were reinvested towards maintenance, operating, capital and other expenditures
Foxtrot International also holds a 24 percent operated stake in Block CI-12 offshore Côte d’Ivoire. In November 2021, the licence partnership agreed to enter the second term and to plan for the drilling of an exploration well.