Woodside Petroleum Ltd. will increase its interest in two of its core Mauritanian exploration areas following the signing of an agreement to acquire Agip Mauritania BV, a wholly owned subsidiary of Italian oil and gas company ENI Exploration BV.
Agip Mauritania BV holds a 35% interest in each of production sharing contract Area A, which contains the Banda discovery, and production sharing contract Area B, which contains the Chinguetti and Tiof discoveries.
In a related transaction, Woodside has agreed to sell to the remaining joint venturers their pro rata share of the interest being acquired from ENI in each contract area.
As a result, Woodside's equity in both contract areas will increase from 35% to 53.84%, if each joint venturer takes its pro rata share.
Woodside will make a final investment decision on the Chinguetti development by mid-2004 with first production expected in late 2005. This follows the successful production test of the Chinguetti appraisal early development well in October.
The acquisition and selling transactions will close in early 2004.
Equity in the production sharing contracts following the Agip acquisition, and assuming pro rata allocation of interests among all of the joint venturers, will be:
