DNO ASA agreed to acquire operated stakes in offshore gas and associated liquids production assets in Côte d'Ivoire, West Africa for $117.25 million in an all share-transaction.
RAK Petroleum PLC is expected to transfer its ownership of Mondoil Enterprises LLC to DNO, which comprises 33.33% indirect interest in privately held Foxtrot International LDC.
Foxtrot International holds 27.27% interest in and operatorship of Block CI-27 offshore Côte d'Ivoire containing the country’s largest reserves of gas, produced together with condensate and oil, from four offshore fields tied back to two fixed platforms. Foxtrot International also operates exploration Block CI-12, offshore Côte d’Ivoire, in which it holds a 24% interest.
In addition to Foxtrot gas field, Block CI-27 contains Mahi gas field, Marlin oil and gas field, and Manta gas field. Produced gas is transported by pipeline to fuel power stations in Abidjan.
In early 2020 the Block CI-27 joint venture embarked on a 2-year development and onshore infrastructure construction project to supply gas to two new power stations. This work is nearing completion following drilling of three new and two side-track wells. The last well in the program is currently progressing.
During first-half 2022, gross sales averaged 200 MMcfd of gas and 1,500 b/d of oil and condensate. The additional processing and well capacity are slated to increase gas supply to over 230 MMcfd. Drilling of up another 1-2 wells over the period of the extension is expected to maintain the higher production capacity of the license.
The transaction, expected to close in October 2022, is subject to shareholder approval and other conditions.