African Petroleum to integrate with PetroNor

African Petroleum has an agreement to combine with privately-owned PetroNor E&P, via an all-share acquisition of AP.

Offshore staff

LONDONAfrican Petroleum (AP) has an agreement to combine with privately-owned PetroNor E&P, via an all-share acquisition of AP.

Subject to shareholder approval and other conditions, the new entity will retain the name PetroNor E&P.

PetroNor has production interests in shallow-water offshore Congo (Brazzaville), with estimated net 2P reserves of 8.5 MMbbl.

Its net production is around 2,300 b/d from four fields (Tchibouela, Tchendo, Tchibeli and Litanzi), developed with seven wellhead platforms. Currently they are producing from more than 50 active production wells, with oil exported via the onshore Djeno terminal and the Nkossa FPSO.

In addition, PetroNor is in talks on acquiring a producing asset offshore Nigeria with upside potential from contingent resources to be developed.

The Congo fields are 25 km (15.5 mi) off the coast of Pointe Noire in water depths of 80-100 m (262-328 ft). PetroNor subsidiary Hemla E&P Congo participated in the 2016 tender process with the Congo Ministry of Petroleum for the PNGF Sud license (brownfield), also securing a right to negotiate an entry into an exploration license for the PNGF Bis fields (28%).

Perenco operates PNGF Sud and will likely also be named operator of PNGF Bis, west of PNGF Sud, which contains two undeveloped fields, Loussima and Loussima SW, discovered respectively in 1985 and 1987/1991.

The plan is to implement an extended production test of Loussima SW in 2020 through an existing mobile offshore production unit at estimated capex of $37 million, in order to de-risk the full-field development.

03/21/2019

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