Image: Zukiman Mohamad, Pexels
On Tuesday, Austsralia’s FAR Limited (FAR) said that it had obtained an additional 10 percent interest in Blocks A2 and A5 in Gambia’s offshore, giving the firm a 50 percent working interest and operatorship.
Under the agreement, FAR and Petronas will pay signature bonuses of $4.5 million for the licenses, effective 1 October 2019. Key terms under the new licenses include an initial three-year exploration period, with a two-year optional extension period.
“FAR is very pleased to conclude the discussion with the Government of The Gambia, which has resulted in the signing of new licenses for the A2 and A5 blocks. In addition to FAR acquiring the additional 10 percent equity in these blocks, the new licenses reset the exploration periods and provide more time and options to fully explore this acreage,” the firm said in a statement.
A 3D seismic survey will be conducted this year, because of the high prospectivity of the blocks. Drilling activities will commence in 2020.
Blocks A2 and A5 are located close to the world-class SNE oil field, in which FAR holds a 15 percent interest.
FAR’s subsidiary, FAR Gambia and PC Gambia Ltd – a subsidiary of Petronas – will each have a 50 percent participating and paying interest in the blocks.
H.E. Fafa Sanyang, Gambia’s Minister of Energy and Petroleum, will attend the Africa Oil & Power (AOP) Conference and Exhibition. He will join a growing lineup of petroleum ministers from across the African continent.