By OGJ editors
LONDON, Feb. 23 -- Eni SPA has agreed to acquire major onshore interests in Congo (Brazzaville) from Maurel & Prom, Paris, for $1.4 billion.
The deal covers Maurel & Prom's 48.6% interest in M'Boundi oil field; 66% interest in Kouakouala A oil field; 50% interest in the Kouakouala B, C, and D production concession; and a 50% interest in the Kouilou exploration permit, in which the seller will retain 15%.
Eni said it expects its net equity production from M'Boundi field to increase to 28,000 b/d of 39º gravity crude in 2010 from 17,000 b/d this year through water injection. Original oil in place is estimated at 1.4 billion boe.
The acquisition, subject to partners' waiver of preemption rights in M'Boundi field and approval by Congolese authorities, will boost Eni's entitlement production in Congo (Brazzaville) to 100,000 b/d in 2010 from 67,000 b/d in 2006. Its proved and probable equity reserves in the country will rise by 126 million boe.
M'Boundi partners are Burren Energy 35% and Energy Africa 11%.
Maurel & Prom said it will use some proceeds of the sale to explore in Colombia, Congo, Gabon, Sicily, Syria, and Tazania.
The company said last month that it would increase water injection capacity at M'Boundi from 20,000 b/d to 60,000 b/d in mid-2007 and to 120,000 b/d in 2008. The project is to include the addition of 16 injector wells through drilling or conversion this year.
Total M'Boundi production exceeds 50,000 b/d of oil. Kouakouala field produced 1,000 b/d of oil from four wells last year.