Tullow Oil takes 15% stake in Angolan block

Tullow Oil has concluded an agreement with Ocean Angola Corporation, a subsidiary of Devon Energy, to assume a 15 per cent interest…

Tullow Oil has concluded an agreement with Ocean Angola Corporation, a subsidiary of Devon Energy, to assume a 15 per cent interest in an exploration block off Angola.

Block 24 is located in the Southern Kwanza Basin and is operated by Devon Energy. The block is situated immediately to the west of Block 10, where Tullow also has a 15 per cent interest and recently participated in two wells.

The site is situated in water depths of between 750 and 1,600 metres.

Tullow began drilling on the Kabetula-1 prospect in Block 10 on December 22nd but the drilling failed to discover hydrocarbons and is consequently being plugged and abandoned.

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"The recent exploration wells on Blocks 10 and 24 demonstrate the high risk nature of exploration in the Southern Kwanza Basin," said Aidan Heavey, Chief Executive of Tullow.

"However, the entry into these large blocks, which are likely to yield further high impact prospects, is part of a long term commitment by Tullow to building a business in Angola."