Independent oil and gas exploration company African Petroleum (AP) has extended a binding exclusivity agreement regarding the farm out of its operated interest in licenses offshore Senegal and The Gambia.
In mid-April, AP signed non-binding heads of terms and a binding exclusivity agreement with what the company described as “a well-funded, listed oil and gas company with a strong track record in offshore deep-water drilling.”
The heads of terms and exclusivity agreement provide a framework for the incoming third party to secure a 70 percent operated interest in the company’s SOSP production sharing contract (PSC) in Senegal and the A1 and A4 licenses in The Gambia.
Currently, African Petroleum holds a 90 percent operated working interest in exploration blocks Rufisque Offshore Profond (ROP) and Senegal Offshore Sud Profond (SOSP). The National Oil Company Petrosen holds the remaining 10 percent equity. In The Gambia, AP holds a 100 percent operated working interest in offshore licenses A1 and A4.
The initial exclusivity agreement granted the third party an eight-week period of exclusivity over the company’s SOSP PSC in Senegal and the A1 and A4 licenses in The Gambia. During this period, the company and the incoming party worked together to amend the work commitment in Senegal and enter the next phase of the licenses in The Gambia as well as complete due diligence and agree and execute farm-in documentation.
African Petroleum said on Wednesday that it has been working together with the incoming party to finalize negotiations with both governments.
“While good progress has been made to date, the period of exclusivity in the exclusivity agreement has been extended for a further six weeks until July 20, 2017, to ensure there is adequate time to complete this process,” said AP.