Aussie firm to operate deepwater Senegalese blocks

Petrosen, Senegal's national oil company, has granted operatorship of the deepwater Rufisque, Sangomar, and Sangomar blocks to First Australian Resources Ltd. (FAR).

Jan. 28, 2009

Uchenna Izundu
International Editor

LONDON, Jan. 28 -- Petrosen, Senegal's national oil company, has granted operatorship of the deepwater Rufisque, Sangomar, and Sangomar blocks to First Australian Resources Ltd. (FAR).

FAR has also increased its working interest in the acreage to 90% and will carry out its drilling program under a production-sharing agreement.

For the first renewal period, Senegal's energy ministry has extended the license for a year. FAR is negotiating with an undisclosed major company to join it on the exploration program.

So far, FAR has shot 2,000 sq km of 3D seismic off the northwest African nation with Petrosen and identified several plays and drillable prospects.

"The increased interest in the blocks has placed FAR in a stronger negotiating position in the farm-out process that was delayed by the need to obtain an extension," the firm said.

FAR has received farmin offers from other companies that have access to rigs and proven capacity to operate deepwater wells. The joint venture has met all obligations under the first renewal period and spent $17 million, twice the minimum amount specified under the contract.

Contact Uchenna Izundu at [email protected].