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Daewoo, Woodside in Offshore Myanmar PSC

Woodside advises that Daewoo International Corporation has accepted an offer by Woodside to farm-in to the Production Sharing Contract for Block AD-7 in the Rakhine Basin, located in the western offshore area of the Republic of the Union of Myanmar.

The offer is for a 40% participating interest in the Production Sharing Contract, and is subject to execution of fully-termed agreements, completion of due diligence, and necessary government and other approvals. Daewoo will remain  operator of the PSC.

The proposal provides the opportunity for Woodside and Daewoo to undertake a 3D seismic acquisition program during the period 2013-2014. The transaction also provides the option to drill an exploration well in a subsequent exploration period.

Woodside CEO Peter Coleman said the offer demonstrated the company’s commitment to secure international growth opportunities in frontier and emerging basins that leverage Woodside’s core capabilities, especially in deepwater exploration.

“The Rakhine deep water basin is an exciting frontier exploration area and Block AD-7 is adjacent to the Daewoo-operated Shwe field development,”  Coleman said.

“We are looking forward to finalising this opportunity and building a new partnership with Daewoo.”

Daewoo, Woodside in Offshore Myanmar PSC| Offshore Energy Today.

Apache Inks Suriname PSC

Apache Corporation today signed a production sharing contract (PSC) with Suriname’s oil company Staatsolie for offshore block 53. located in the territorial waters of the South American country.

The contract, divided into exploration, development and production phases, is valid for approximately 30 years. The parties have agreed to a minimum working program for the exploration phase, which includes geological surveys and exploration drilling. Apache will take full responsibility for all costs during the exploration phase.

If a commercial find has been made and brought into production, Apache will receive reimbursement for such costs. The contract offers Staatsolie the opportunity for a stake in the development phase of up to 20 percent.

Block 53 is located at approximately 130 kilometers off the northwest coast of Paramaribo. The exploration period under the contract is divided into two phases with a combined investment of approximately US$230 million. The duration of the first phase is scheduled for three years with an optional second phase of two and a half years. In addition to a large 3D seismic survey, two wells will be drilled in the first phase with a third well to be drilled in the optional second phase. The production sharing contract explicitly deals with inspection, safety and the environment. There are also special provisions for employment of local cadre, training, social programs and the dismantling of facilities at the end of operations.

Apache Inks Suriname PSC| Offshore Energy Today.

Tullow Becomes Operator of New PSC Offshore Mauritania

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Tullow Oil plc (Tullow) announces that new Production Sharing Contract (PSC) arrangements have been agreed with the Government of Mauritania and its Joint Venture partners. These arrangements will enable the Group to progress the appraisal and development of existing discoveries and pursue exploration in a new contract area covering 10,725 square kilometers with Tullow as operator.

The new arrangements, reached through transactions with partners and PSC awards from the Government, result in the exploration areas of the PSCs previously known as PSC-Area A and PSC-Area B being replaced by a new, single Exploration PSC called C-10. Tullow will operate this new PSC with a 59.15% interest. The existing Banda, Tevet and Tiof discoveries have been ring-fenced under their original PSC terms and extensions of up to 18 months have been granted to allow appraisal and development activities to be completed. Petronas will continue to operate Chinguetti Field on the basis of the original equities.

Tullow will now work closely with the Government of Mauritania and its Joint Venture partners on the near-term commercialization of the existing discoveries and the initiation of a high-impact exploration programme. The development of the Banda gas and Banda oil rim discoveries will be prioritized and it is expected that the results of initial development studies will be presented to the Government in early 2012. The high impact exploration programme is expected to include a minimum of two wells over the next three years.

Following the various agreements with partners and the Government of Mauritania, Tullow has significantly increased its equity position in the region.

As a result of this increase in activity in Mauritania, Tullow expects to significantly enhance its presence in Nouakchott, with a strong focus on the development of local staff and local content wherever possible. Furthermore, Tullow will be looking to award a number of bursaries to suitably qualified students from Mauritania.

Commenting today, Aidan Heavey, Chief Executive, said:

“We are delighted to have agreed new PSC arrangements offshore Mauritania. As Operator of the Banda, Tiof and Tevet discoveries, we will now work closely with the Government of Mauritania to commercialize these important hydrocarbon resources. We have also identified significant new exploration potential in this acreage and look forward to applying the knowledge and expertise of similar geological plays gained from our successful Equatorial Atlantic exploration campaigns in West Africa and South America. While we have worked in Mauritania for many years, this is essentially an exciting new beginning for Tullow as we increase our equity and take on the operatorship in these highly valuable and prospective licenses.”

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