Tullow in new Mauritanian agreement

31st Oct 2011 07:04

Irish oil behemoth Tullow Oil has signed a new production sharing contract (PSC) with the government of Mauritania and its joint venture partners.The PSC will enable Tullow to advance the appraisal and development of existing discoveries and also pursue exploration in a new contract area covering 10,725 square kilometres with Tullow as operator. The new arrangements result in the exploration areas of the PSCs previously known as PSC-Area A and PSC-Area B being replaced by a new, single Exploration PSC called C-10. Tullow will operate this new PSC with a 59.15% interest. The existing Banda, Tevet and Tiof discoveries have been ring-fenced under their original PSC terms and extensions of up to 18 months have been granted to allow appraisal and development activities to be completed. Petronas will continue to operate Chinguetti Field on the basis of the original equities.The development of the Banda gas and Banda oil rim discoveries will be prioritised and it is expected that the results of initial development studies will be presented to the government in early 2012. The high impact exploration programme is expected to include a minimum of two wells over the next three years.--jh