Shell Enters Mauritania's Offshore
Anglo-Dutch major Shell signed two production-sharing contracts with the government of Mauritania for the exploration and potential future production of hydrocarbons in the offshore blocks C-10 and C-19, it said that day. “This move represents Shell’s entry into the west African Atlantic Margin exploration basin, which has significant potential,” said Shell’s head of upstream, Andy Brown in the July 23 statement. “We look forward to working with the government and people of Mauritania as we bring our expertise and technical capability to help develop the country’s emerging energy sector.”
Neither block is near the border with Senegal, where Kosmos has made six large gas discoveries and attracted BP as a partner. Kosmos has also drilled two dusters further north.
Mauritania's oil minister Mohamed Ould Abdel Vetah, said: “Shell’s new entry in the Mauritania offshore area represents an important added value to the exploration activities and will contribute to maintain the momentum for developing the energy sector in Mauritania.”
Following the customary government approvals of the contracts, Shell will set up an office in the capital, Nouakchott and begin exploration activities, starting with reprocessing and analysis of existing seismic data and acquisition of new data. Shell will operate the exploration programme with 90%, the rest held by state Societe Mauritanienne des Hydrocarbures et de Patrimoine Minier.
The two parties will also evaluate further offshore exploration opportunities, examine new ways of meeting the country’s domestic energy needs, and build capability in the energy sector, Shell said. Blocks C-10 and C-19 are offshore Mauritania in water depths ranging from 20 to 2,000 metres. The total area of two blocks is approximately 23,675 km². The new block C-10 consists of three previous blocks: C-10, C-28 and C-29.
Shell has agreed with Chariot Oil & Gas a back-in right for a working interest of between 10% to 20% equity in the C-19 block at a future date, subject to the customary state approval.
Last December the US major ExxonMobil signed a similar agreement for offshore blocks, also for 90%.