Kosmos To Farm into Ophir EG Licence

UK independent Ophir Energy said May 14 it has agreed to farm out a 40% interest in its EG-24 exploration licence offshore Equatorial Guinea (EG) to US producer Kosmos Energy. EG state-owned GEPetrol retains a 20% carried interest in the EG-24 licence.

Kosmos will fully carry Ophir for the cost of a block-wide 3D seismic survey, during the first exploration period of the licence, and also partially carry Ophir for the cost of a well if the partners later elect to drill a well in the second period of the licence. Kosmos will also pay its pro-rata share of past costs. Ophir said seismic operations on the licence were to start May 14 using Shearwater’s Polar Marquis vessel.

Ophir CEO Nick Cooper said: "Kosmos is a logical partner for us in EG-24 as its team have considerable prior experience of the Rio Muni Basin. Kosmos now operates the adjacent exploration blocks (W, S & EG-21) as well as retains a 50% interest in Kosmos-Trident Equatorial Guinea Inc., which operates the neighbouring Ceiba and Okume oil fields, which are up-dip from Block EG-24 and can offer infrastructure tie-backs if required. The farm-out reduces Ophir's risk capital commitment and increases our monetisation options in line with our disciplined exploration strategy."

Ophir last week was cautioned by the EG government that, unless it takes a much-delayed Final Investment Decision in its Fortuna floating LNG project there soon, it risks losing control of the venture (see NGW Magazine Vol.3 Iss.9, p27, May 14 - available now to subscribers  – for more details).