LONDON-BASED oil and gas company Ophir Energy has entered into a farm-out agreement with American international oil company Kosmos Energy, covering the EG-24 exploration licence in Equatorial Guinea.
Under the terms of the Africa’s oil and gas agreement, Kosmos will acquire a 40 per cent non-operated interest in Block EG-24.
In consideration, Kosmos will fully carry Ophir for the cost of a block-wide 3D seismic survey, during the first exploration period of the licence. Furthermore, Kosmos will partially carry Ophir for the cost of a well if the partners subsequently elect to drill a well in the second period of the licence.
Kosmos will also pay its pro-rata share of past costs.
Commencement of the seismic operations conducted by Shearwater was scheduled to begin 14 May 2018, using the Polar Marquis vessel.
According to Ophir, a major player in the central African country’s oil and gas fields, the completion of this transaction is conditional on approval by the government of Equatorial Guinea.
Nick Cooper, CEO at Ophir Energy, said, ‘Kosmos is a logical partner for us in EG-24 as its team have considerable prior experience of the Rio Muni Basin. Kosmos now operates the adjacent exploration blocks (W, S & EG-21) as well as retains a 50 per cent interest in Kosmos-Trident Equatorial Guinea Inc., which operates the neighbouring Ceiba and Okume oil fields, which are up-dip from Block EG-24 and can offer infrastructure tie-backs if required.’
‘The farm-out reduces Ophir’s risk capital commitment and increases our monetisation options in line with our disciplined exploration strategy,’ Cooper further added.