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BP Secures Long-Term Crude Offtake Rights in New Deal with Coastal Africa Group

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BP (BP) has secured exclusive rights to market and lift crude oil and condensate from future projects developed by Coastal Africa Group under a long-term agreement linked to a convertible loan facility, the companies said on Friday.

Coastal Africa Group said it entered into an exclusivity agreement with BP Oil, granting the energy firm and its affiliates the exclusive right to offtake and market all crude oil and condensate production to which the group becomes entitled through its projects.

The deal is part of a broader financing package tied to a convertible loan note agreement and positions BP as the preferred marketing partner for future hydrocarbon output generated by Coastal Africa's portfolio.

Under the deal, BP's exclusivity will remain in place until it has lifted a specified minimum aggregate volume of crude oil and condensate under separate offtake and marketing agreements. Coastal Africa said that any extension beyond that period would require mutual consent.

Coastal Africa agreed to use reasonable efforts to structure future projects and commercial arrangements so that either the energy firm or BP could market production from project partners and third-party producers.

The agreement includes financial penalties designed to protect BP's exclusivity. Coastal Africa and its subsidiaries may be liable to pay per-barrel damages if they breach the exclusivity provisions.

The agreement can be terminated under certain conditions, including insolvency events or changes of control affecting either party. Termination, in some cases, could trigger compensation payments by Coastal Africa based on the minimum committed volume.

BP also retains the right to terminate the agreement without cause upon written notice. The exclusivity arrangement will remain effective regardless of whether the convertible loan is repaid or converted into equity, and will not be affected if BP subsequently sells any shares.

Price: $43.89, Change: $-0.15, Percent Change: -0.34%

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