Cairn Goes FAR In Another West Africa Play
Africa - focused independent FAR announced a farm-out of its 65% stake in three Senegalese blocks to Cairn Energy . Under the agreement , which must still be approved by the Senegalese government, Cairn will fund exploration costs , including planned drilling up to a cap of US$80mn and will also repay FAR for US$9.8mn in previous expense. The country's national oil company (NOC) Petrosen will retain a 10% interest.
Cairn , which has sought to refocus its efforts after a problematic exploration campaig n offshore Greenland, plans to drill an exploration well offshore Senegal in 2014. This will add to Cairn's interest in the region, with up to four well s planned in the company's acreage offshore Morocco in the same year.
Cairn will move into three deepwater blocks - Rufisque, Sangomar and Sangomar Deep - within the Mauritania-Senegal-Guinea-Bissau basin. FAR has identified 11 potentially drillable prospects in the existing acreage, with unrisked prospective resource estimates of 58-632mn barrel s (bb l) of oil - in -place . Existing 3D seismic data on the blocks puts total prospective unrisked resources at 6.6bn bbl of oil-in- place. In a move that could help de-risk Senegal's deepwater , African Petroleum plans to spud an exploration well on the Alhamduillah prospect in 2013 , which FAR notes extends into the company's existing Senegalese blocks. FAR estimates the chances of a discovery in Senegal range from 11-38%.