Savannah Signs PSC with Niger for R3/R4 License Area

Savannah Petroleum announced Friday that it has signed a Production Sharing Contract (PSC) with the government of Niger for the country’s R3/R4 license area.

As part of the deal, a signature bonus payment of $28 million will soon be made to the state of Niger. Savannah has already mapped 29 leads across the R3/R4 PSC area with a range of closure sizes similar to existing discoveries in the basin, according to a company statement. Under the PSC for the R3/R4 license area, the state of Niger’s public participating interest in the region will be set at 15 percent.

The minimum work program for the area requires the acquisition of 289 square miles of 3D seismic data and the drilling of two wells during the initial period of the exclusive exploration authorisation (EEA), 193 square miles of 3D seismic and two wells during the first renewal period of the EAA and 96 square miles of 3D seismic and two wells during the second renewal period of the EAA.

Andrew Knott, CEO of Savannah Petroleum, commented in a company release:

"The signing of the R3/R4 PSC is another landmark transaction for Savannah. We have now licensed circa 50% of the Agadem Rift Basin, which the board believes places the company in a very strong position for the future given our assessment of the scale, risk profile and cost structure of our assets. I would again like to thank the government of Niger for awarding the PSC to us, and for their support over the past three years. Savannah will now move to commence what we expect to be an aggressive exploration program over our licenses which we hope will deliver material benefits for all of our stakeholders over the coming years."

Have a news tip? Share it with Rigzone!


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at
 -  LyondellBasell Plans Its Largest Inves... (Jul 21)
 -  Preparing a Mechanical Engineering Res... (Jul 19)
 -  Tesoro Signs Deal with Pemex to Enter ... (Jul 19)
 -  Irish Gas Grid Could Receive LNG from ... (Jul 19)
 -  What's It Take to Land a Job as a Petr... (Jul 14)

Most Popular Articles

From the Career Center
Jobs that may interest you
Roustabout Thereafter Job
Expertise: Roustabout
Location: Silverthorne, CO
Land GIS Spatial Analyst - Mineral Land
Expertise: Contracts Engineer|Geologist|Lease Analyst
Location: Denver, CO
Tool Tech
Expertise: Maintenance Technician|Mechanic|Rig Mechanic
Location: New Iberia, LA
search for more jobs

Brent Crude Oil : $49.3/BBL 0.80%
Light Crude Oil : $46.79/BBL 0.70%
Natural Gas : $3.04/MMBtu 0.97%
Updated in last 24 hours