West Africa-focused energy firm African Petroleum Corporation Limited announced Monday that it has entered into a new production sharing contract with Ophir Energy plc covering the CI-513 license area in Cote d’Ivoire.
Under the terms of the new PSC, Ophir Energy will hold a 45 percent operated interest in the license area. African Petroleum will have a 45 percent interest and Petroci, the National Oil Company of Côte d’Ivoire, will hold the remaining 10 percent carried interest. Ophir Energy will make a contribution of $16.9 million towards African Petroleum’s historical investment in 3D seismic and the transaction costs. In addition, Ophir will contribute 10 percent towards the drilling of the first exploration well on the block.
The new PSC has been signed by African Petroleum, Ophir Energy, Petroci, and two out of three of the relevant government ministries. The final ministry signature is expected to be signed in the near future, according to an African Petroleum statement.
Jens Pace, CEO of African Petroleum, said in a company statement:
“We are pleased to have signed this new PSC with Ophir Energy who bring a wealth of experience and technical expertise to Block CI-513 in Côte d’Ivoire. We look forward to working with Ophir Energy and Petroci to jointly explore the potential of this exciting block.
“Successful completion of this transaction has been the key priority for the management team and we believe this transaction endorses our acreage and importantly our strategy by highlighting that there remains an industry appetite for world class exploration of this type despite the prevailing industry headwinds. We now shift our focus to completion of further deals on our acreage in Senegal and the Gambia.”
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