PetroNor Gets Gambian Offshore License Extension Amid Farm-Out Talks

PetroNor Gets Gambian Offshore License Extension Amid Farm-Out Talks
PetroNor has received a one-year extension for the A4 license offshore Gambia from the country’s government.

Oil and gas exploration and production company PetroNor has received a one-year extension for the A4 license offshore Gambia from the country’s government.

PetroNor said that the longstop date of the license was until October 18, 2022, which will enable the company to progress its ongoing discussions with potential partners.

The company has a 90 percent interest in the license while the remaining 10 percent is held by the government of The Gambia.

PetroNor has previously had issues with the government of The Gambia over the A4 license, but they reached a settlement agreement in September 2020, resulting in the reinstatement of the license to the company.

Following the settlement, the company was granted the license for a period of one year, ending on September 18, 2021, to process data and progress farm-out discussions. The company also relinquished claims related to the A1 license.

After September 18, PetroNor received a thirty-day extension to the longstop date of the license, after which it waited for the government’s response to its request for the extension of the longstop date, which has now been received.

"We are delighted to have negotiated this extension which strengthens our long-standing partnership with the Government of The Gambia. After the successful reinstatement of the license, PetroNor has progressed discussions with a number of interested parties,” Eyas Alhomouz, chairman of PetroNor, said.

“This extension will hopefully enable the company to convert those discussions into a formal partnership agreement with a view to proving up the exciting prospectivity of A4. The market conditions and industry appetite for this kind of high-impact asset have vastly improved over the past few months which has solidified our confidence in realizing value from this asset going forward," he added.

To contact the author, email bojan.lepic@rigzone.com


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