Lukoil Signs Deal for West African Project

Lukoil
|


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
 - Lukoil Taps SNC-Lavalin for Iraq Contract (Sep 06)
 - Lukoil Reports 20% Rise In 2Q Profit On Stronger Oil, Weaker Rouble (Aug 29)
 - Romania Closes One Case Against Russia's Lukoil, Related Trial Still On (Nov 17)
Company: Nexen, Inc. more info
 - 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
 - Pioneer Natural Resources Profit Hurt By Higher Costs, Hedging Loss (Aug 07)
 - Shale Companies Sink On Investor Disappointment, Hedging Losses (Aug 01)
 - Pioneer Chairman Says Permian Faces Shut Ins on Pipe Shortage (Jun 20)
Company: Roc Oil more info
 - 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
 - Permian Auction Doubles 2008 Record with near Billion-Dollar Sale (Sep 07)
 - Shale Companies Sink On Investor Disappointment, Hedging Losses (Aug 01)
 - Devon Energy Plans to Lay Off 9 Percent of Staff to Boost Returns (Apr 10)
Company: Noble Energy more info
 - Noble Energy Gives In to Permian and Transport Challenges, Shares Fall (Aug 03)
 - Israel, Egypt Gas Partners Near Deal to Control EMG Pipeline (Jun 14)
 - Noble Energy's Sales Volume Forecast Disappoints, Shares Slide (May 01)
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)