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Detained: PetroNor chief executive Knut Sovoldis detained in OsloPhoto: PETRONOR E&P

PetroNor E&P chief executivedetained in Norway in Africa corruption probe

Okokrim agency detainsKnut Sovold as part of a graft probe

19 March 2019 15:54 GMT

16 December 2021 13:44 GMT UPDATED 16 December 2021 16:04 GMT

By IainEsau

Knut Sovold, chiefexecutive of Africa-focused independent PetroNor E&P, has been detained byNorwegian authorities as part of an investigation into a potential "criminaloffence, causing the company's share price in Oslo to plunge 15%.

According to Okokrim,Norway's National Authority for the Investigation & Prosecution of Economic& Environmental Crime: "The investigation is related to projects inAfrica."

PetroNor operates oris a partner in multiple offshore licences in Congo-Brazzaville, Gambia andGuinea-Bissau.

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In addition, twoSenegal blocks originally awarded to PetroNor are the subject of a long-runningarbitration process, while a deal to farm into OML 113 — which hosts the Ajefield — in Nigeria has been delayed for some time.

Okokrim said"neither PetroNor E&P Limited nor any other company has beencharged," adding that "the investigation is at an early stage and wehave no further comment at this time".

In Sovold's absence,Jens Pace has been appointed interim chief executive of the Australia-domiciledcompany whose shares trade on Oslo's Euronext Expand platform.

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Pace told Upstream:"From what the company understands, the reason (for the investigation) iscriminal charges brought against individuals, and the company has not beeninformed of any suspicions against the company as such.

"I have beenappointed by the board to act as interim chief executive during the investigationperiod in order to ensure that ongoing operations are well taken care of.

"The company willcooperate fully with the authorities in order to facilitate an efficientcompletion of the investigations."

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Immediately afterPetroNor announced Sovold's detention in mid-afternoon on 15 December, thecompany's share price plunged 15% from just over Nkr1.00 ($0.11 ) to Nkr0.85.

The stock pricebottomed out at Nkr0.73 early on 17 December before recovering to Nkr0.81 laterthe same day.

PetroNor said: “Thecompany has been informed that chief executive of PetroNor E&P Limited,Knut Sovold, is one of the individuals being detained as part of theauthorities’ investigations to obtain information that may confirm or disprovea suspicion of a criminal offence.”

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The company added thatOkokrim officials had entered the company's premises in Oslo on 15 December.

News of Sovild'sdetention and the Okokrim probe came after the company announced, on 2December, it was changing its country of domicile from Australia to Norway,with its shares to be admitted to Oslo's main bourse.

This redomicilingprocess had been expected to complete on or about 21 December.

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However, on 9December, PetroNor said "due to the timing of processes outside thecompany’s control, the completion of the redomicile process has been postponeduntil after New Year."

A second court hearingon the redomicile scheme was due to be held at the Supreme Court of WesternAustralia on 16 December, but this has now been postponed to 28 January nextyear.

Production comes fromthe Perenco-operated PNGF Sud licence in Congo-Brazzaville where earlier thismonth PetroNor said the Tchibeli North East project had been sanctioned.

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The project calls forproduction to be routed through a newly installed mobile offshore productionunit with oil transported to the nearby Litanzi platform for processing.

Development drillingis due to start after completion of the four-well Litanzi infill drillingprogramme.

PetroNor's the otherassets are exploration tracts — Block A4 in Gambia, blocks 2, 4A and 5A inGuinea-Bissau and the Rufisque Offshore Profond and Senegal Offshore SudProfond blocks in Senegal — although the latter are currently the subject ofarbitration.

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At the start of 2021,PetroNor's proven and probable resources stood at 22.1 million barrels ,whileproduction averaged about 3850 barrels per day of oil.

The company's netunrisked prospective resources have been estimated at some 4 billion barrels ofoil.

Sovold has 30 years ofexperience in the oil and gas industry.

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According to Sovold'sLinkedIn profile, between 1998 and 2005, he worked as a reservoir specialistfor Scandpower, Saga Petroleum, Norsk Hydro and PGS.

He joined AGR as a newventures manager in 2005, before a one year stint at Netherlands-based PangeaLNG in 2012, a posting that coincided with a director role at D&HSolutions.

Sovold founded HemlaEnergy in 2009 and was there until 2020, before being appointed chief executiveof PetroNor in March 2020.

He holds an MSc inPetroleum from Trondheim's Institute of Technology in Norway.(Copyright)