African Petroleum has signed an agreement with an undisclosed oil and gas company that specialises in offshore deepwater drilling. 

Under the agreement, the third-party will acquire 70% operated interest in African Petroleum’s SOSP production sharing contract (PSC) in Senegal and the A1 and A4 licences in Gambia.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

African Petroleum CEO Jens Pace said: "This is a significant development for the company with a well-funded, credible partner with strong deepwater drilling experience.

“Whilst final farm-in agreements are subject to completion and the successful outcome of negotiations with the governments in Senegal and Gambia, we are confident that the proposed partner’s reputation, strong balance sheet and appetite to explore the potential of these exciting licences with the drill-bit, will greatly increase our ability to conclude the discussions with an outcome that benefits all parties.”

The agreement will provide an initial eight-week period of exclusivity to the third-party over SOSP PSC in Senegal and the licences can be extended under specific conditions.

"This is a significant development for the company with a well-funded, credible partner with strong deepwater drilling experience."

During this period, African Petroleum and an undisclosed party will finalise negotiations with respective governments to amend the work commitment in Senegal and to enter the next phase of licences in Gambia.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

They will also complete due diligence and execute a farm-in agreement.

Under the agreement, the party needs to pay up to $8.5m to African Petroleum, fund 100% of at least two deepwater offshore wells at a gross cost of up to $35m for each well, and the complete 3D seismic acquisition and pre-stack depth migration processing / reprocessing. 

The agreement also requires the party to potentially fund 100% and 85% respectively of additional two wells at a gross cost of up to $35m per well.