LONDON – Tullow Oil and its partners have agreed terms for new offshore Production Sharing Contracts (PSCs) with the government of Mauritania.
The exploration areas previously known as PSC–Area A and PSC–Area B are replaced by a new, single PSC called C-10, covering an area of 10,725 sq km (4,141 sq mi), which Tullow will operate with a 59.15% interest.
The Banda, Tevet and Tiof discoveries have been ring-fenced under their original PSC terms, and extensions of up to 18 months have been secured to allow completion of appraisal and development activities.
Petronas will continue to operate the producing Chinguetti field on the basis of the original license interests.
Tullow and its partners will work to commercialize the existing finds, prioritizing the Banda gas and Banda oil rim discoveries, and they expect to submit the results of initial development studies to the Government early next year 2012.
They are also drawing up a potentially high-impact exploration program that will likely include at least two wells over the next three years.
Due to the upturn in activity, Tullow expects to enhance its presence in Nouakchott, developing local staff and content where possible.
Chief Executive Aidan Heavey said: “We have also identified significant new exploration potential in this acreage and look forward to applying the knowledge and expertise of similar geological plays gained from our successful Equatorial Atlantic exploration campaigns in West Africa and South America.”