Adamantine Energy and Seychelles sign 34-year oil agreement

Sept. 9, 2022
Oil exploration in Seychelles’ territorial waters is set to restart now that the island nation signed an agreement with a Canadian oil company.

Offshore staff

NAIROBI, Kenya  Oil exploration in Seychelles’ territorial waters is set to restart now that the island nation signed an agreement with a Canadian oil company on Friday, said a top official, according to various industry reports.

Adamantine Energy Seychelles (AESL), a wholly owned subsidiary of Adamantine Energy, has announced the signing of a petroleum agreement to formally acquire a 100% operated stake in two blocks offshore the Seychelles. 

The Beau Vallon and Junon blocks cover 9,700 sq km in water depths of up to 200 m. The Junon block is partially covered by a 1,500 sq km 3D modern seismic survey.

"This transaction is the result of years of geological and geophysical review and analysis of the region by our team," said AESL CEO Chris Matchette-Downes. "This stake in the Beau Vallon and Junon blocks directly supports our strategy to be a key part of the delivery of the stable, secure energy resources the world needs today, and upon success will diversify the Seychellois economy while providing the nation critical energy security."

Adamantine said it will work closely with PetroSeychelles and its partners to unlock the hydrocarbon potential of the Republic of Seychelles. 

The signing of a petroleum exploration agreement with Adamantine Energy, which has its regional headquarters in Nairobi, Kenya, was a move approved by the Cabinet of Ministers in May this year.

“Very strict environmental rules have been included in the agreement to ensure that the Seychelles is protected,” said the Minister for the Blue Economy, Jean-Francois Ferrari, at the signing of the agreement at his ministry’s headquarters. “Our partners want those roles, because they believe that if they do the job properly with respect to the environment, then their reputation will be enhanced."

The minister, Adamantine Energy chairman Craig Bridgman and PetroSeychelles CEO Patrick Joseph signed the agreement.

Joseph, head of the state-owned hydrocarbon exploration regulator, told the press that “if at any point, they believe the company is carrying out work that is detrimental to the environment, both the government and the company may put a halt to the undertakings.”

The 34-year agreement between the two parties is 10 years in the making, and Bridgman said his company is convinced “that there is great energy potential in Seychelles."

During the exploration period, the company will be paying fees to the government and should petrol be found in the Seychelles’ waters, 10% on the first barrels of oil and 5% on gas, should be given to the government, according to the agreement.