FAR and ConocoPhillips enter farm-in deal for oil blocks offshore Senegal

oil senegal-djmacpherson wikimediacommonsAustralia-listed FAR and US oil and gas firm ConocoPhillips have agreed to a farm-in for three oil exploration blocks offshore Senegal

FAR’s deal with ConocoPhillips follows close on the heels of another farm-in with Cairn Energy for three offshore oil blocks — Rufisque, Sangomar and Sangomar Deep — which together will potentially result in an investment of about US$190mn. FAR owns 90 per cent interest and is the operator of the three oil blocks.

With the two farm-in agreements in place, a two-well exploration drilling programme is likely to start in the first half of next year and will test combined prospective resources of about one billion barrels of oil in the west African country, FAR sources said.

The drilling campaign is likely to test a ‘shelf’ play and a deeper water ‘fan’ play and both have significant follow up drilling potential in the event of a discovery.

In order to earn a 10 per cent working interest in the Senegalese permits, ConocoPhillips will provide funding equivalent to a full carry through a second exploration well, with the farm-in targeting the deep ‘fan’ play. FAR has assessed Senegal blocks to have prospective resources of 3.5bn barrels of oil.

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