Stay Connected

Addax Petroleum to acquire interest in deepwater JDZ

Offshore staff

CALGARY, Alberta -- Addax Petroleum Corp. has agreed to acquire Esso Exploration and Production Nigeria- São Tomé (One) Ltd.'s 40% interest in block 1 of the Joint Development Zone (JDZ) that lies in the deepwater between Nigeria and São Tomé and Príncipe. This area of the Gulf of Guinea is one of the most prolific petroleum regions in the world, Addax says.

"This acquisition will expand and consolidate our leading position in this world class exploration region," says Jean Claude Gandur, Addax Petroleum president and CEO. "The addition of block 1 to our existing interests in JDZ blocks 2, 3, and 4 is consistent with our strategy that a focused, JDZ-wide exploration campaign will demonstrate the full potential of the region and bring about its earliest development. In that respect, block 1 is particularly important as it already contains a well, which encountered hydrocarbons and has several further prospects. I believe this acquisition to be an important building block in our broader deepwater Gulf of Guinea portfolio that will deliver value to our shareholders and stakeholders."

Addax Petroleum and Esso Exploration and Production Nigeria-Sao Tome (One) Ltd. have entered into a sale and purchase agreement whereby Addax Petroleum has agreed to acquire Esso's 40% interest in block 1 and, as consideration, to pay $77.6 million and 2% of Addax Petroleum's share of profit oil produced from the block. Completion of the sale and purchase agreement is subject to the approval of the Joint Development Authority of the JDZ.

Block 1 lies 300 km (186 mi) offshore Nigeria in water depths ranging from 1,600 to 1,900 m (5,249-6,234 ft), directly west of JDZ block 2 and directly north of JDZ blocks 3 and 4. Block 1 contains well Obo-1, the only well drilled to date in the JDZ. Obo-1 is significant because it encountered hydrocarbons when drilled in 2006. There are no further exploration commitments on block 1 during the current exploration period. Chevron operates block 1 with 45.9% interest.

The Aban Abraham deepwater drillship will drill up to ten exploration and appraisal wells, beginning in 4Q 2008, in the JDZ and at OPL291, Addax Petroleum's other deepwater Gulf of Guinea license area.

9/25/2007

Related Articles

CEPSA agrees to Coastal Energy takeover

Nov 19, 2013

Spanish oil company CEPSA has agreed to acquire Coastal Energy via a share purchase.

Statoil fined for North Sea waste mix-up

Nov 19, 2013

Statoil has been handed a NOK-10 million ($1.64-million) fine for an incident on the Oseberg C platform in May 2011.

Trending News

Hoover Container Solutions moves to new Australian complex

Oct 22, 2014

Hoover Container Solutions Pty Ltd., a subsidiary of Hoover Group Inc., has moved to a larger and newly renovated facility in Perth, Western Australia, to accommodate its expansion in the region.

UT-led team to study GoM hydrates as energy source

Oct 22, 2014

A research team led by the University of Texas has received $58 million to analyze deposits of frozen methane offshore under the Gulf of Mexico to establish its potential to increase the world’s energy supply.

Norway’s high taxes hinder Arctic oil viability

Oct 22, 2014

States and international oil companies are banking on the Arctic as a major source of future oil and gas production, but the high costs and risks involved with operations in the area mean that an attractive fiscal regime is essential if developments are to be commercially viable, says an analyst with research and consulting firm GlobalData.

Offshore Photo of the Day

Total names de Margerie’s successors

Oct 22, 2014

Total has appointed Thierry Desmarest as chairman of the board of directors and Patrick Pouyanné as CEO and president of the Executive Committee.

  Offshore
Digital Magazine
Look Inside
Cover
Current Issue

Oil & Gas Jobs

View more Job Listings >>