Companies sign PSC for block off Equitorial Guinea

Starc Ltd. and Glencore Exploration Ltd. have signed a production-sharing agreement with Equatorial Guinea’s state oil firm GEPetrol for offshore Block EG-07.

Uchenna Izundu
OGJ International Editor

LONDON, July 27 -- Starc Ltd. and Glencore Exploration Ltd. have signed a production-sharing agreement with Equatorial Guinea’s state oil firm GEPetrol for offshore Block EG-07.

The companies negotiated the PSC in Malabo along with the Ministry of Mines Industry and Energy, but it still requires ratification by the government.

Block EG-07 (formerly Blocks D-14 and E-14) lies to the west of Blocks I and Q in Equatorial Guinea’s segment of the Douala basin. Noble Energy recently said it plans to develop its $1.3 billion Aseng oil and gas-condensate project on Block I by mid-2012 (OGJ Online, July 22, 2009). Glencore has a 25% interest in the project.

Interests holders in the Block EG-07 license include Starc with 47.5%, Glencore 37.5%, and GEPetrol 15%.

The Ministry of Mines, Industry, and Energy anticipates that additional PSCs will be signed before yearend 2010.

Contact Uchenna Izundu at uchennai@pennwell.com.

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