African Petroleum, an independent oil and gas exploration company, has announced that the new Production Sharing Contract (PSC) with Ophir Energy covering the company’s CI-513 licence area in Côte d’Ivoire or Ivory Coast is now effective.
African Petroleum and Ophir entered the PSC for the Ivory Coast block in December 2015. Having been signed by the final government Ministry, the PSC is now effective.
According to the agreement, Ophir Energy will make a contribution of $16.9 million towards African Petroleum’s back costs in relation to the block.
Ophir Energy holds a 45% interest and is the operator, while African Petroleum holds a 45% interest and Petroci (the National Oil Company of Côte d’Ivoire) holds a 10% carried interest.
The agreement also resulted in an extension to previous minimum work commitments on the block, and now requires that an exploration well be drilled within 2 years of the signing of this new PSC.
Commenting on the announcement, Jens Pace, CEO of African Petroleum said: “We are pleased to have received the final ministerial signature on this new CI-513 PSC with Ophir Energy in Côte d’Ivoire and complete this important transaction.
Pace added: “Completion of this transaction enables us to shift our full focus onto our ongoing and progressive discussions with potential partners for our world class acreage in Senegal and the Gambia. As highlighted by this transaction with Ophir Energy, industry appetite remains for world class exploration acreage and our assets in these countries are most certainly in this category.”