Singapore-listed Rex International has teamed up with Monarch Marine Holding to invest in oil and gas plans offshore West Africa.
The two companies have formed Porto Novo Resources, incorporated in the British Virgin Islands.
Rex has a 70% stake in the unit, with a $1.05 million investment. Monarch has the remaining 30%, with an equity contribution of $0.45mn.
A statement from Rex said it had identified an offshore licence in West Africa as a “first possible investment”. The plan is to use the cash contributed to make this first move. They plan to finance further deals in a similar fashion, in line with their equity stakes.
Making the acquisition via a joint venture gives Rex majority control over management and operations, it noted. At the same time, it dilutes the level of risk Rex is under.
Rex’s executive director Karl Lidgren owns a 40% stake in Monarch via a wholly owned company, Cresta. Hans Lidgren, who owns a notable stake in Rex, also owns Riton Holding, which has a 40% stake in Monarch. Rex’s COO Svein Kjellesvik owns the last 20% of Monarch.
The company also holds Block 50 in Oman and, via Lime Petroleum, works in Norway at Brage and Yme. Total production was 9,874 barrels of oil equivalent per day in September.
Rex has said it has been looking out for viable production or near production assets in order to “grow its production and reserves portfolio and geographical presence”. The company has set the goal of reaching 20,000 bpd.
Rex has held a number of discussions with Monarch on creating a joint venture. In November 2021, they held talks on investing in marine assets and formed Crescent Marine Holding.
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