Item 8.01. Other Events
On May 15, 2021, Sky Petroleum, Inc. (the "Company") entered into memorandum of
understanding ("MOU") between the Company and Himmelhoch Petroleum & Gas limited
PTY, a South Africa corporation ("HPG", together with the Company, the
"Parties") to establish a joint venture (the "Joint Venture"). The Joint Venture
will be subject to a definitive agreement to be negotiated by the Parties.
Under the MOU, the Parties agree that the areas of interest for the Joint
Venture will initially be, but not limited to, South Africa and other countries
identified by the Parties. The Parties agree that Phase I of the Joint Venture
is to maximise potential supply of Aviation Gasoline, Biofuels, Diesel, JET
fuel, Liquified Petroleum Gas paraffin & Petrol as outlined in HPG's Wholesale
License Certificate (No: W/2017/10298) issued October 13, 2017, issued by the
Department of Energy, Republic of South Africa, and in conjunction with the
storage terminal and pipeline authorisation by KEPU Trading Limited, a company
owned by KEPU Holdings. The KEPU Storage terminal and pipeline facilities, which
are located in Saldhana Bay, have a storage capacity of 60m barrels, and will be
used by the Joint Venture. It is anticipated that the Joint Venture will
initially be able to reasonably use 30-35% of capacity (mixed products) monthly
on best efforts basis. The Parties anticipate being operational in the 4th
quarter 2021. The Parties have agreed to an equal split on revenues.
The Company is also in advanced negotiations in connection with securing
marketing and supply arrangements for the Joint Venture. There can be no
certainty the these will conclude positively. We will update on any material
progress.
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