Svenska reaches farm-down agreement with CNOOC West Africa Petroleum E & P SA in Guinea Bissau
CNOOC West Africa Petroleum E & P SA (“CWPE”), a wholly owned subsidiary of CNOOC Limited, has reached an agreement with Svenska GB to farm-in to the Sinapa and Esperança Licences.
SPE Guinea Bissau AB (''Svenska GB''), a wholly owned subsidiary of Svenska Petroleum Exploration AB, Sweden, is the Operator of Block 2, the Sinapa Licence, and Blocks 4A & 5A, the Esperança Licence, offshore Guinea Bissau.
The other co-venturers in these licences are FAR Limited (“FAR”) and Empresa Nacional de Pesquisa e Exploração Petrolíferas, E.P. (“Petroguin”, the state owned oil company).
This transaction is subject to regulatory approvals which are currently being progressed. The farm-in will occur when a decree of the Council of Ministers approving the transaction has been promulgated.
As part of the agreement, CWPE will acquire a 55.5555% participating interest in these frontier exploration licences for the exploration phase, which will convert into a 50% participating interest in each of the licences in the event of a commercial discovery.
Svenska GB will continue to operate the frontier exploration licences for the exploration well scheduled for drilling in first quarter of 2020. Subject to receiving regulatory approvals, the transaction is expected to close in the third quarter of 2019.