EXPLORATION GROUP Tullow Oil is set to boost its presence in west Africa after signing a new agreement with the Mauritanian government.
Tullow Oil says it has signed a new product-sharing contract with the government of Mauritania and a number of joint-venture partners. It will open up 10,725sq km of new exploration territory off the west African country’s coast and Tullow to progress with the appraisal and development of existing discoveries.
Under the deal’s terms, the existing production-sharing areas A and B will be merged into a larger zone, C. Tullow will operate this and will own a 59.15 per cent stake. Its partners, Petronas, Kupfec, Premier and SMH, will hold the remaining 40.85 per cent.
Within the new area, Tullow’s existing discoveries – Banda, which holds oil and gas; Tevet and Tiof – will be ringfenced and operated according to original production-sharing terms.
Petronas will continue to operate the Chinguetti field according to the original terms governing the asset.
Tullow has been given an 18- month extension to allow appraisal and development to be completed.
The Irish exploration company said it would work with the Mauritanian government and its partners on the commercialisation of existing discoveries and an exploration programme.
“The development of the Banda gas and Banda oil rim discoveries will be prioritised and it is expected that the results of initial development studies will be presented to the government in early 2012,” Tullow said yesterday.
