Rialto Energy has signed an agreement with Vitol Exploration and Production (E&P), under which the two companies will work together to develop Rialto’s interests in Ghana and Côte d’Ivoire
In Ghana, as per the agreement, Vitol E&P will acquire a 20 per cent interest in Rialto Energy in exchange for providing a facility to cover Rialto’s US$7.7mn expense for the drilling Starfish-1 oil exploration well in the Accra Block, offshore Ghana, which is due to spud in June 2013.
In Côte d’Ivoire, Vitol E&P will acquire 65 per cent of the shares in Rialto Energy. In exchange, it will provide US$50mn to be invested in offshore Block CI-202 work programme next month.
The deal also states that Rialto Energy and Vitol E&P will work with the government of Côte d’Ivoire to pursue a potential multi-asset, shallow water gas development strategy for the discovered resources in Block CI-202 and its neighboring blocks, besides other things.
Rob Shepherd, Rialto Energy’s managing director, said, “Vitol is a strong partner with significant experience in both of these countries and we believe the transaction validates the potential opportunity offered by our assets in West Africa.”
