Malabo, Equatorial Guinea, October 23, 2017//-The Ministry of Mines and Hydrocarbons of Equatorial Guinea, Kosmos Energy of the US and national oil company GEPetrol have signed three new production sharing contracts (PSC) for Block EG-21, Block S and Block W offshore Rio Muni.
The deal marks Kosmos’ first PSCs in Equatorial Guinea.
Block EG-21 was offered for tender during the EG Ronda 2016 oil and gas licensing round. Block S and Block W, previously operated by CNOOC and PanAtlantic Energy respectively, were negotiated directly with Kosmos and were not offered under the open bidding round. Block EG-21 covers 2,495 square kilometers, Block S covers 1,245 square kilometers and Block W is 2,254 square kilometers. In each block, Kosmos will hold an 80 percent stake and GEPetrol will control the remaining 20 percent.
Minister of Mines and Hydrocarbons H.E. Gabriel Mbaga Obiang Lima said: “Kosmos Energy has demonstrated extraordinary and consistent success in frontier exploration projects in West Africa. We trust Kosmos will bring important knowledge and technology to Equatorial Guinea, an established oil and gas producer in Africa with proven potential. We look forward to working with Kosmos as we continue to push the boundaries in oil and gas exploration.”
Dallas-Based Kosmos Energy has already earned a reputation as a top frontier explorer in West Africa, having made mega-discoveries off the coasts of Senegal and Mauritania. Kosmos made one of the largest finds in a decade in West Africa with Ghana’s Jubilee field in 2010. Triton Energy, where Kosmos co-founder Brian Maxted served as senior vice president for exploration, was responsible for a series of discoveries in the Rio Muni basin in Equatorial Guinea, including the Ceiba field in 1999.
The PSCs for the block are based on Equatorial Guinea’s model PSC, and stipulate minimum work programs that comprise a first exploratory period of three years, which include acquiring seismic data; a second exploratory period of two years, which includes drilling an exploratory well; and the possibility of two one-year extensions, which include requirements to conduct seismic interpretation and drill another exploration well, respectively.
The PSC also stipulates spending on local content and social responsibility.
Kosmos Energy is also operating in Ghana after identifying the Tano Basin offshore Ghana as a potential premier hydrocarbon system.
Previous industry drilling had failed to deliver significant success offshore Ghana. However, Kosmos’ vision and differentiated approach to exploration led to important discoveries and proved the overlooked Upper Cretaceous stratigraphic play concept.
Kosmos’ Jubilee discovery in 2007 was the company’s first major discovery and one of West Africa’s largest discoveries of the last two decades. First production from the initial development phase was in late 2010. Average production is approximately 100,000 barrels of oil per day, and Jubilee partners are working to enhance field performance. Jubilee is a world-class, long-life production asset.
Success at Jubilee led to a number of follow-on oil and gas-condensate discoveries on the West Cape Three Points and Deepwater Tano blocks. On the Deepwater Tano block, the company received approval for the Tweneboa, Enyenra, and Ntomme (TEN) Plan of Development, and first production is targeted for 2016.
On the West Cape Three Points Block, Kosmos and partners are submitted the Greater Jubilee Full Field Development Plan and to the Ghanaian Ministry of Petroleum. Upon approval of the plan, the partnership will be able to start developing the Greater Jubilee area by connecting the Mahogany and Teak fields to the Jubilee floating production, storage and offloading vessel.
African Eye Report