Panoro to become majority shareholder in producing Block G offshore Equatorial Guinea

Panoro Energy has entered an agreement to acquire a Kosmos Energy subsidiary that has a 40.375% non-operated interest in Block G offshore Equatorial Guinea.

The block contains the producing Ceiba field and Okume Complex, operated by Trident Energy. Panoro, which already has a minority interest, will increase its share to 54.625% on closing the deal with Kosmos. The initial cash consideration is $180 million.

State-owned GE Petrol owns the remaining 5% in the block.

Ceiba, which came onstream in 2000, has been developed in phases, initially by Amerada Hess, with all the production wells tied back to the Ceiba FPSO.

The Okume Complex comprises five separate oil fields LL developed via four fixed jacket structures and two tension leg platforms. Following processing, the oil is transported to the Ceiba FPSO for export.

Panoro expects to add 2P reserves of 46 MMbbl from the transaction and contingent resources of 29 MMbbl, and to lift its overall production from its various projects to 20,000b /d in 2027

Executive chairman Julien Balkany said: “Block G has been core to Panoro’s success since we purchased our initial 14.25% working interest exactly five years ago [from Tullow Oil], in February 2021.

“Our deep understanding of the producing Ceiba field and Okume complex gives us strong confidence in the assets’ long‑term potential and ability to continue generating material cash flow…”

Block G has produced over 490 MMbbl to date, with the potential to deliver beyond the current license expiry of end 2040, Panoro claims.