Statoil admits new partners to deepwater blocks offshore Angola

Genel Energy and White Rose have agreed on farm-ins to 15% of blocks 38 and 39 offshore Angola.

Apr 3rd, 2014

Offshore staff

LONDON – Genel Energy and White Rose have agreed on farm-ins to 15% of blocks 38 and 39 offshore Angola.

Both are in the Kwanza basin spanning an area of roughly 14,000 sq km (5,405 sq mi) in water depths of 1,500-2,500 m (4,921-8,202 ft).

Genel sees multi-billion barrel prospectivity in both licenses, with direct analogies to the Santos and Campos basins offshoreBrazil.

Cobalt International has demonstrated a working hydrocarbon system in the Kwanza basin through the nearby Cameia, Lontra, Mavinga, Bicuar, Orca, and Azul discoveries.

OperatorStatoil Angola has contracted the drillship Stena Carron for a program due to start in the current quarter on block 39, probably targeting the Dilolo prospect. The next well is expected to be on block 38.

Genel/White Rose will pay $59 million to China Sonangol to farm into block 38, and have agreed on a consideration payment of $222 million to Statoil for the interest in block 39. The full payment will depend on the farminees agreeing to participate in additional activity in the block.

On completion, the interests in blocks 38 and 39 are expected to be as follows:

Block 38

Interest

Block 39

Interest

Statoil (operator)

55.0%

Statoil (operator)

40.0%

Sonangol

30.0%

Sonangol

30.0%

Genel Energy/WREV

15.0%

Total

15.0%

Genel Energy/WREV

15.0%

04/03/2014

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