Echo Energy PLC Bolivia: Cooperation Agreement and Exclusivity (9986K)
January 08 2021 - 1:00AM
UK Regulatory
TIDMECHO
RNS Number : 9986K
Echo Energy PLC
08 January 2021
8 January 2021
Echo Energy plc
("Echo" or the "Company")
Bolivia: Cooperation Agreement and Exclusivity
Echo Energy, the Latin American focused energy company, is
pleased to announce that it has signed a cooperation agreement (the
"Cooperation Agreement") with GTL International S.A. ("GTLI"), a
majority owned subsidiary of the Bolivian company UruboCorp
focussed on energy production and supply in Bolivia and with
interests in both the hydrocarbon and renewables sectors.
Pursuant to the Cooperation Agreement the Company and GTLI will
collaborate to jointly promote their business development
initiatives in Bolivia, including through joint efforts to identify
and assess new business development opportunities across the full
energy spectrum, in relation to which the parties have granted each
other a six month period of exclusivity ("Exclusivity"). The
Cooperation Agreement will enable a portfolio of opportunities to
be matured in a cost-effective way across the Bolivian energy
space.
Echo has existing long-term relationships in Bolivia, has been
represented on the Bolivian Hydrocarbon and Energy Chamber and the
country remains a key focus of the Company's Latin American growth
strategy. Given the current business environment in Bolivia, the
Echo Board believes that there is a window of opportunity to pursue
business development opportunities across the energy sector,
including potentially renewables, and the relationship now formed
with GTLI under the Cooperation Agreement is expected to further
strengthen the Company's local relationships and will provide the
Company with access to advantaged additional origination
opportunities and valuable local insight.
GTLI is a leading Bolivian Energy Operator and holds the El
Palmar operational hydrocarbon contract with the Government of
Bolivia and is a subsidiary within a larger investment group known
as UruboCorp that includes mining (gold), real estate and energy,
and with interests in both the hydrocarbon and renewables
sectors.
Cooperation between the Company and GTLI on any specific
projects identified remains subject to, inter alia, the negotiation
and entry of binding agreements and Echo will focus on any
opportunities that meet its stringent profitability and positive
cashflow criteria. The grant of a period of Exclusivity is the only
binding term of the Cooperation Agreement. The Cooperation
Agreement has an initial term of 5 years and may be terminated by
either party without penalty on providing 6 months' notice.
Martin Hull, Chief Executive Officer of Echo Energy,
commented:
"I'm delighted that we have signed this important Cooperation
Agreement with GTLI, a leading Bolivian energy company which has a
highly skilled team and an attractive portfolio of business
interests in the Bolivian energy sector. The framework now in place
under the Cooperation Agreement will enable the Company and GTLI to
combine their respective skillsets taking the best of both to work
together to seek to originate and execute transactions across the
energy sector in Bolivia at a point in time where we see
significant and potentially highly commercial opportunity
in-country."
Luis Carlos Kinn, CEO of GTLI, commented:
" For GTLI, this Cooperation Agreement is an important step for
growing our energy business in Bolivia, where we see a great deal
of opportunity. We chose to collaborate with Echo Energy due to
their detailed knowledge, strong relationships and passion for our
country. They bring a reputation for providing innovative
commercial solutions and a strong focus on managing costs to
projects. We look forward to working closely with the Echo Energy
team and using our combined knowledge and skills to build up an
opportunity set across the energy spectrum, as the future for
Bolivia is very exciting."
For further information, please contact:
Echo Energy via Vigo Communications
Martin Hull, Chief Executive Officer
Vigo Communications (PR Advisor)
Patrick d'Ancona
Chris McMahon +44 (0) 20 7390 0230
Cenkos Securities (Nominated Adviser)
Ben Jeynes
Katy Birkin +44 (0) 20 7397 8900
Shore Capital (Corporate Broker)
Jerry Keen +44 (0) 20 7408 4090
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END
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