Russian major private oil company LUKOIL has acquired a $185 million worth 37.5% stake in Etinde project off Cameroon from Bowleven, Africa-focused exploration group, in a production-sharing contract (PSC), the Russian and British companies report.

According to Bowleven, the deal to sell Etinde’s 50% will amount to around $250 million, with $170 million paid once the deal has been finalized, $40 million in deferred payments after prospecting drilling in Etinde area and $40 million once two wells have been drilled.

Another 12.5% stake in Etinde, is purchased by the British New Age exploration company (African Global Energy) that already holds 25% in the project and will now operate the permit. Bowleven Plc retains 25% of Etinde PSC.

“We are extremely proud of the substantial progress that we have made with Etinde in discovering resource and creating markets,” said Bowleven Chief Executive, Kevin Hart. “With the Exploitation Authorisation approved and nearing formal award, gas sales discussions are well advanced, and have significantly increased scope for expansion to additional gas offtake solutions, in particular CLNG [Center for Liquefied Natural Gas], we believe now is the right time to bring in a new partner and transfer operatorship.”

According to LUKOIL, the deal will be finalized on approval from Bowleven Plc shareholders and Cameroon government. Thirteen of the sixteen wells drilled have shown positive results, and two more wells are to be drilled next year; the discovered reserves are now being evaluated, goes the release. The final investment decision on the feasibility of further development is expected in 2015.

Etinde Permit is located in the Gulf of Guinea not far from the border to Equatorial Guinea and comprises three licensed blocks with a total area of 2,300 square kilometers.