Ophir Energy inks new Eq Guinea deal

Ophir Energy signed an MoU with GEPetrol and the Ministry of Mines and Hydrocarbons of Equatorial Guinea for Block EG-24, the company announced Tuesday.

Under the deal, which is set to be followed by a PSC, Ophir will operate the block with an 80% stake. GEPetrol will hold the remaining 20% and have the option to increase this share to 30% if a commercial discovery is made. The company will have an initial exploration period with two two-year segments and two one-year extensions. Ophir has agreed to purchase the 2D- and 3D-seismic data that has already been collected for most of the block as well as obtain an additional 3,000 square kilometres of 3D seismic. If a commercial discovery is made, the development and production rights will last 25 years with a five-year extension.

“Ophir Energy is already an innovative and committed investor in Equatorial Guinea through Block R and the Fortuna FLNG project. We are delighted to welcome our partners to explore Block EG-24, which shows amazing signs of yielding enormous oil and gas reserves,” Minister of Mines and Hydrocarbons Gabriel Mbaga Obiang Lima said in a press statement. “This new deal is a vote of confidence in the oil and gas sector in Equatorial Guinea and the result of a very well received global licensing round for a country like ours that has a drilling success rate above worldwide average. I look forward to Ophir’s next drilling campaign and a possible discovery.” 

The block was awarded in June 2017, as part of the Ronda 2016 licensing round. The PSCs are expected to be ratified by the end of 2017.