Petronas farms into FAR’s Gambia blocks ahead of new well

Australian oil and gas company FAR Ltd has signed a farm-out agreement with a subsidiary of Petronas to assign a 40% interest in each of the offshore petroleum licenses, Blocks A2 and A5 in The Gambia.

FAR is to retain a 40% interest in each of the highly prospective licenses and operatorship, the Australian company said on Monday. The remaining 20% is held by Erin Energy.

Malaysia’s Petronas will fund 80% of total well costs of the Samo-1 exploration well up to a maximum total cost of $45 million. Based on a completion date of March 31, 2018, FAR is to be paid estimated cash of $13.5 million for reimbursement of back costs and cash consideration.

In addition to this, Petronas will fund FAR’s share of non-well costs up to a maximum amount of $1.5 million. FAR will remain operator through the exploration phase of the A2/A5 licenses, including the drilling of the Samo-1 well, and Petronas has a right to become the operator for development. The Samo-1 well is expected to be drilled in late 2018 and will be the first exploration well offshore The Gambia since 1979. FAR estimates the Samo Prospect contains prospective resources of 825mmbbls oil.

Completion of the farm-out agreement is subject to Ministerial approval from the Government of The Republic of the Gambia and customary joint venture consents.

FAR Managing Director, Cath Norman, said: “This farm-out deal with Petronas is further recognition of the value of our Gambian licenses and FAR’s status as a partner of choice in the Mauritania-Senegal-Guinea-Bissau-Conakry Basin. FAR has built an enviable position in the basin and we look forward to drilling the Samo-1 well later this year. Success in this well would be of significant value to our shareholders and truly transformational for the people of The Gambia.

Petronas brings world class technical and financial strength to our joint venture. Petronas also has significant deep-water development expertise in the event of a discovery. FAR welcomes Petronas to the Joint Venture and looks forward to a long and successful relationship.”

Share this article

Follow Offshore Energy Today

Events>

<< Dec 2018 >>
MTWTFSS
26 27 28 29 30 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 1 2 3 4 5 6

Fuel Cell Expo 2019

FC EXPO is world’s largest show for hydrogen & fuel cell…

read more >

LNG Bunkering Summit 2019

LNG Bunkering Summit will cover the obstacles facing both the shipping and port communities…

read more >

Egypt Petroleum Show

This event will feature 500+ regional & international exhibiting companies from over 35 countries…

read more >

IoT in Oil & Gas 2019

The IoT in Oil & Gas 2019 Conference will continue to focus on helping operators…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply