Lukoil Signs Deal for West African Project



Lukoil Overseas has signed an agreement to acquire 63% interest in the exploration, development, and production project on the deepwater block CI-205 offshore Cote d'Ivoire from Oranto Petroleum International Ltd., a private Nigerian company.

Preconditions for the completion of the deal include the customary approval of the appropriate government authorities of Cote d’Ivoire and the appointment of Lukoil Overseas the operator of the project.

Currently, the project is the subject of a production sharing agreement between the Republic of Cote d'Ivoire, represented by the Ministry of Mines and Energy and the Ministry of Economy and Finance, and the consortium of Oranto Petroleum International Ltd. (90%) and the National Petroleum Co. of Cote d`Ivoire, PETROCI Holding (10%).

Block Cl-205 is located in the Gulf of Guinea. It is assigned to the Tano Basin with proven oil and gas potential and lies 15 kilometers from the recently discovered Baobab oil field, the largest in Cote d'Ivoire. The size of the block is 2,600 square kilometers. Distance to shore is approximately 100 kilometers.

The PSA was signed in July 2001. Over the past 5 years 2,400 square kilometers of 3D seismic and 4,900 line kilometers of 2D seismic were acquired. The exploration period is split into three phases with combined duration of 7 years. Presently, the project is in the second exploration phase, which requires the consortium to drill an exploration well.

Upon a discovery of hydrocarbons, the block's development period will be 25 years with a possible extension for an additional 10 years.

The national petroleum company Societe Nationale d’Operations Petrolieres de la Cote d’Ivoire (PETROCI Holding) is wholly owned by the Cote d'Ivoire government. The holding company includes PETROCI Exploration-Production, the upstream arm, PETROCI Gaz, the gas distribution grid, and PETROCI Industrie-Services, the petroleum services company. Average production is approximately 100,000 barrels per day, nearly two-thirds of which come from the Baobab field.

Oranto Petroleum Ltd. (Nigeria) is a subsidiary of Atlas Petroleum International Ltd. It is currently working on 10 blocks in Nigeria, Equatorial Guinea, and Republic of Cote d'Ivoire. Its production exceeds 10,000 barrels of oil per day. Atlas specializes in the development of offshore oil fields. The company's main partners are TransAtlantic Petroleum, Devon Energy, Noble Energy, Pioneer Natural Resources, Nexen, and Roc Oil.

RELATED COMPANIES
Company: Lukoil more info
 - Transneft: Oil Supplies to Lukoil's Norsi Refinery Suspended Due to Fire (Oct 05)
 - Russia's Lukoil Eyes Decade Of Oil Output Growth (Sep 20)
 - Lukoil Finds Oil at Iraq Well (Feb 22)
Company: Nexen, Inc. more info
Operates 2 Offshore Rigs
 - Alberta Regulators Charge Nexen Energy Over 2015 Pipeline Spill (Jul 06)
 - Cenovus Drops Most Ever as $13.3 Billion Deal Ramps Up Risks (Mar 30)
 - UKCS Oil, Gas Extraction Drops 10% (Dec 08)
Company: Pioneer Natural Resources more info
 - Rising Gas Output Drags Down Shares Of US Shale Leader Pioneer (Aug 02)
 - Pioneer Natural Trims 2017 Budget, Cites Weak Oil Prices (Aug 01)
 - Kemp: US Shale Producers Are Drilling Themselves into a Hole (Jun 30)
Company: Roc Oil more info
Operates 1 Offshore Rigs
 - Santos Names Roc Oil CEO Anthony Neilson as CFO to Replace Andrew Seaton (Sep 19)
 - SapuraKencana Clinches $72M of Work in Malaysia, India & Cote d'Ivoire (Dec 08)
 - Faroe Completes Roc Oil Acquisition (Nov 06)
Company: Atlas Petroleum more info
 - Noble, Partners Test Positive at Diega Discovery (Aug 29)
 - Atlas to Sidetrack REB3 Well Offshore Tunisia (Aug 19)
 - Noble Successful at Diega Offshore Equatorial Guinea (Jul 15)
Company: Devon Energy more info
 - Shale Drillers Show Few Signs of Slowing as Profits Expand (Aug 02)
 - Devon Energy Trims Full-Year Spending (Aug 01)
 - Devon Energy Plans To Divest $1B Assets; Profit Beats (May 02)
Company: Noble Energy more info
 - Fault at Israel's Tamar Gas Field Prompts Use of Dirtier Fuels (Sep 22)
 - Leviathan Partners in Talks to Pipe Gas to Egypt Via Jordan (Aug 10)
 - Deal Of The Month: Noble Energy Marches Out of Marcellus in Full $1.9B Exit (May 31)
Company: TransAtlantic Petroleum more info
 - TransAtlantic Provides Update on Recent Well Results in Turkey (Sep 23)
 - TransAtlantic Adds Member to Board (Feb 10)
 - TransAtlantic to Sell Oilfield Services Business (Feb 28)
Company: Societe Nationale d’Operations Petrolieres de la Cote d’Ivoire (PETROCI) more info
 - Statement: Workers at Ivory Coast's Petroci Go On Strike (Jun 29)
 - Singapore-listed Rex International Holding Ups Stake in Oman's Masirah Oil (Mar 17)
 - Cote d'Ivoire Approves Ophir's Acquisition of 45% Stake in Block CI-513 (Mar 11)
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.