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

Cooper Energy hopes for Tunisian portfolio sale

Dec 30, 2014

Cooper Energy Ltd (ASX: COE) has updated its divestment of its Tunisian interests.

Reliance consortium set to withdraw from India block

Dec 29, 2014

Hardy Oil and Gas (LSE: HDY) has consented to Reliance Industries’ plan to relinquish the KG-DWN-2003/1 (D3) exploration license offshore eastern India.

BG to resume exploration near Jordbaer offshore Norway

Dec 29, 2014

BG Norge has approval from Petroleum Safety Authority (PSA) Norway for exploration drilling in the Jordbaer area of the North Sea.

Early production gets go-ahead for Búzios offshore Brazil

Dec 29, 2014

Petrobras has authorization to start up the early production system of well 2-ANP-1RJS on the presalt Santos basin Búzios field.

North Sea Brynhild tieback onstream

Dec 29, 2014

Lundin Petroleum has produced first oil from the Brynhild field in the Norwegian North Sea.

Trending News

BP has agreement in principle to settle governmental Macondo claims

Jul 2, 2015

BP has an agreement in principle to settle all federal and state claims arising from the Macondo oil spill in the Gulf of Mexico. 

Norwegian government realigns Johan Sverdrup field interests

Jul 2, 2015

The Norwegian Ministry of Petroleum and Energy has determined the various ownership interests in the Johan Sverdrup field in the central Norwegian North Sea.

South Pars Phase 1 platform capacity upgrade completed

Jul 2, 2015

Production capacity of Platform SPD1 serving Phase 1 of the South Pars gas field in the Persian Gulf has reached 1 bcm/d (35 bcf/d).

Noreco settles offshore Denmark liabilities

Jul 2, 2015

Norwegian Energy Co. (Noreco) has reached agreement with its joint venture partners in the Danish North Sea on its forfeited licenses and related abandonment liabilities.

COSCO Qidong extends delivery of semisubmersible accommodation rig to Axis Offshore

Jul 2, 2015

COSCO Qidong Offshore Co. Ltd. has agreed to extend the delivery of a harsh environment semisubmersible accommodation rig to Axis Offshore. 

  Offshore
Digital Magazine
Look Inside
Cover
Current Issue

Oil & Gas Jobs

Search More Job Listings >>