Chinese crude oil producer CNOOC is taking over operatorship of a block located in the offshore joint development zone between Senegal and Guinea-Bissau.
African-focused exploration company Impact Oil and Gas is farming out a 65% participating interest in a Production Sharing Contract (PSC) and associated joint operating agreement in the AGC Profond block to CNOOC. The agreement has been reached between Impact’s subsidiary, Impact Oil & Gas AGC Ltd, and CNOOC’s subsidiary, CNOOC UK Limited.
The offshore AGC Profond PSC covers approximately 6,700km², in water depths ranging from 1,400m to 3,700m, and is located west of the Dome Flore and Dome Gea oil accumulations, and to the south of the recent Fan-1 and SNE-1 and 2 oil discoveries located at the Cairn-operated offshore field.
Impact was awarded the license in October 2014, starting its technical evaluation of the AGC Profond PSC with the purchase of legacy 2D and 3D seismic data in November 2014, comprising of approximately 3,990km2 3D and 4,739 line km of 2D seismic.
According to the company, prospectivity has been identified at various stratigraphic levels, from the Cretaceous deep-water clastics in the west of the license, to the Jurassic and Cretaceous platform margin plays in the east, similar to the recent discoveries by Cairn.
Impact had previously entered into a farm-out agreement with Woodside Energy (Senegal) Pty Ltd covering the AGC Profond license. However, certain conditions precedent to completion had not been satisfied or waived and the agreement was terminated on February 9, 2017, Impact explained.
The transaction between Impact and CNOOC was completed on March 23, 2017. The participating interests in the AGC Profond PSC following completion of the farm-in by CNOOC is as follows: CNOOC UK Limited, operator (65%); Entreprise AGC SA (an entity owned by Senegal and Guinea-Bissau pursuant to the documents governing the Zone) (15%), and Impact (20%).
Mike Doherty, Executive Chairman of Impact Oil & Gas said: “We are delighted to have a company of CNOOC’s stature joining us as a partner in the AGC Profond Block. We are very excited about the potential of the block given its location and proximity to a number of recent discoveries by Cairn and Kosmos and are confident that CNOOC Group’s technical and financial strength and the knowledge that it has in the conjugate basins of the Atlantic Margins will bring substantial value to the partnership.”