Northern Petroleum set to realign license stake offshore French Guiana

Offshore staff

LONDON– Wessex Petroleum wants to reduce its share of exploration costs on the Shell-led drilling campaign offshore French Guiana by up to £1.5 million ($2.42 million).

The company jointly owns Northpet Investments, which has a 2.5% interest in the offshore Guyane permit, with Northern Petroleum.

Terms of a shareholders’ agreement signed in 2008 allow either party not to fund its equal share of the costs of the venture at any time. In such a case, the other party would have to fund the shortfall to avoid Northpet defaulting on the Guyane permit.

If Wessex takes this action, Northern has resolved to fund the shortfall, in the process increasing its interest in Northpet and the permit.

Thefinal well of the current drilling program is expected to reach total depth during the current quarter. Following a review of the well results, Shell will then outline proposals for the next stage of the exploration and appraisal campaign to Northpet and partners Total and Tullow Oil.

10/17/2013