African Petroleum has signed a production sharing contract with Ophir Energy covering the company's CI-513 licence area in Côte d'Ivoire
Ophir Energy will contribute US$16.9mn towards Africa Petroleum's back costs in relation to the block, which includes 3D seismic and transaction costs. Both companies hold a 45 per cent stake in the block, while Petroci, the Côte d'Ivoire national oil company, holds the remaining 10 per cent interest.
This agreement extends previous minimum work commitments on the block and the terms of the PSC require that an exploration well be drilled within two years of signing.
Jens Pace, CEO of African Petroleum said the PSC highlights "an industry appetite for world class exploration of this type despite the prevailing industry headwinds."
"We look forward to working with Ophir Energy and Petroci to jointly explore the potential of this exciting block."