Page 15 - AfrOil Week 49

AfrOil INVESTMENT AfrOil

FAR said last month that OVL had agreed to venture its name. Oil was discovered at the block
make additional payments of up to $55mn in 2014, and RSSD has determined that it holds
once oil production began at the licence area. an estimated 645mn barrels of oil equivalent in
It explained that these contingent payments recoverable reserves, including 485mn barrels of
would terminate three years after the first sale crude oil and 160mn boe of natural gas.
of oil from the block, during a period that is Peter Coleman, the company’s CEO,
expected to end on or after December 31, 2027. described Sangomar as an attractive asset. “San-
(Sangomar is currently slated to come on stream gomar is an attractive, de-risked asset in exe-
in mid-2023.) cute phase, offering near-term production,” he
Woodside intends to use its current cash was quoted as saying in Woodside’s statement.
reserves to buy the stake offered to OVL, which “The acquisition is value-accretive for Woodside
represents all of FAR’s participating interest in shareholders and results in a streamlined joint
RSSD. venture, which will assist in our targeted sell-
FAR is not the only shareholder in RSSD to down in 2021. We plan to commence devel-
have its plans for sale pre-empted by Woodside; opment drilling next year as we progress the
Cairn Energy (UK) sought to sell its minority project to targeted first oil in 2023.” ™
stake in the project to Lukoil (Russia) earlier this
year but was not able to do so.
Woodside is still awaiting approval from
shareholders and from Dakar for the acquisition
of Cairn’s stake, and now it will have to wait for
a green light for the purchase of FAR’s holdings.
If it succeeds on both fronts, it will see its equity
stake in the Sangomar field rise to 90% and its
stake in the other sections of the licence area
climb to 82%.
The only other company involved in the pro-
ject is Petrosen, the national oil company (NOC)
of Senegal.
The Sangomar block includes three separate
fields – Rufisque, Sangomar Offshore and San-
gomar Deep Offshore – that give the RSSD joint The RSSD block holds about 645mn barrels of oil equivalent (Image: FAR)

PERFORMANCE
Africa Energy: Results from Luiperd-1x

highlight potential of Outeniqua Basin

SOUTH AFRICA DRILL stem test results from Luiperd-1x, a results confirm the joint venture’s decision to
deepwater exploration well drilled within Block proceed with development studies and to engage
11B/12B offshore South Africa, indicate that the authorities about commercialisation.”
Outeniqua Basin is a “world-class hydrocarbon Maier also noted that Luiperd-1x had “inter-
province,” according to Canada’s Africa Energy, sected 85 metres gross sands, of which 73 metres
an indirect shareholder in the project. is net good-quality pay in the main target inter-
In a statement dated December 7, Africa val and thicker than prognosed.”
Energy reported that Total (France) and the Total announced the discovery of gas con-
other shareholders in Block 11B/12B had initi- densate reserves in the Luiperd-1x well in late
ated a drill stem testing programme in mid-Oc- October. It has not yet divulged the size of the
tober. Tests began shortly after Luiperd-1x find, but it has highlighted the fact that Luiperd
reached a total depth of approximately 3,400 is adjacent to Brulpadda, another section of
metres on October 12, it explained. Block 11B/12B where condensate reserves were
According to Jan Maier, the company’s discovered in 2019, thereby opening up a new
vice-president for exploration, the results of hydrocarbon province.
the testing programme highlighted the block’s The French major and its partners used
promise. “We are very pleased with the positive the Odfjell Stavanger rig to drill Luiperd-1x in
test results that show high condensate yield and 1,800-metre-deep water. According to Africa
excellent reservoir connectivity,” he was quoted Energy, they opened the well to flow on Novem-
as saying in Africa Energy’s statement. “These ber 1 and began testing different choke settings.

Week 49 09•December•2020 www. NEWSBASE .com P15