Serbia's Tender Oil & Gas Casamance SARL (TOG), a Tender Group subsidiary, reported Monday that it has recently signed a production sharing contract (PSC) with Senegal’s Ministry of Energy and Petrosen - the national oil company of Senegal. With the approval of the president of the Republic of Senegal, Macky Sall, the PSC was signed for two onshore blocks – Saloum and Senegal Onshore Sud, totalling 11,157 square miles (28,897 square kilometers) – it gives TOG license and exclusive rights for hydrocarbon exploration for the next eight years.
Initial exploration investment is expected to increase during the development and production phase, resulting in drilling wells for new oil and gas production sites on Senegal soil. If commercial discoveries are made, the Republic of Senegal could benefit in profit share and in various tax revenues.
"If prospects on these blocks prove to contain commercial quantities of oil and gas, it will contribute to the continued economic growth of Senegal, helping create new jobs for Senegalese people, provide additional taxes and royalties to fund government programs, and reduce the country's reliance on imported energy supplies" said Gehrig Schultz, president of TOG management board.
“Tender Group is constantly searching for additional promising and challenging geological areas. We believe that this partnership is an opportunity to expand our strong presence in the region and this new strategy allows us to increase our knowledge about the favorable geology of Senegal,” added Ovidiu Tender, owner of Tender Group.
As part of the agreement, TOG will intensively train industry specialists to ensure high quality work and will support national Senegalese social programs in order to contribute to the prosperity of the region. Part of the obligatory $42 million investment made by TOG will be allocated to these actions. TOG holds a 90 percent working interest in the two areas, with Petrosen holding the remaining 10 percent.
TOG’s goal is to lead 2-D seismic exploration in the area and re-process old data to discover new drilling opportunities. When commercial discoveries are made, Tender Oil & Gas will look for exclusive rights to oil and/or gas production for between another 25 and 35 years.
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