Petropars farms into Cabinda North license

InterOil Exploration & Production ASA, Oslo, will sell 10% of its stake in the Cabinda North license in north Angola to Petropars of Iran for $7 million.

May 19th, 2009

Uchenna Izundu
OGJ International Editor

LONDON, May 19 -- InterOil Exploration & Production ASA, Oslo, will sell 10% of its stake in the Cabinda North license in north Angola to Petropars of Iran for $7 million. Its working interest will be reduced to 11% following completion of the deal.

The transaction will cover all of InterOil's current commitments, including social contribution in this block. The agreement requires ratification by the board of Petropars within 14 days.

InterOil Chairman Marten Rod said the company will keep a strong focus and interest in Angola and the development of the Cabinda North license. "InterOil has chosen to divest in order to prioritize other current financial and operational tasks," he said.

InterOil acquired the license in January. The 2,400 sq km license, which is operated by Sonangol P&P, covers the Lower Congo basin and adjoins the border of Congo (Brazzaville). The 3-year work program includes the acquisition of 1,200 km of 2D seismic and the drilling of five exploration wells and three appraisal wells.

An InterOil spokesman told OGJ it plans to appraise the Dinge oil discovery next year under a fast-track appraisal-development program and also acquire 2D and 3D seismic data.

The last discoveries were made by Chevron Corp., then Gulf, in the 1960s, and it drilled an estimated 69 wildcats and four outposts in the 4,625 sq km area, which is now under license. Gulf made six discoveries—one gas and five oil—which were considered marginal at the time. Another seven wells had oil shows.

Partners in the license are Soco International PLC, Teikoku Oil Co. Ltd., and Angola Consulting Resources.

Contact Uchenna Izundu at uchennai@pennwell.com.

More in General Interest