VAALCO Energy has announced that state-owned oil and gas firm Sonangol E&P has been awarded the remaining 40 per cent interest in Block 5 offshore Angola
Sonangol E&P, earlier, had a 20 per cent working interest in the oil and gas block.
The US-based company said that the Ministry of Petroleum had recently assigned the block after former partner Interoil Exploration and Production withdrew three years ago.
VAALCO Energy added that it has began the process of contacting drilling rig companies to secure a semi-submersible rig to commence the exploration phase of the pre-salt/post-salt Kwanza Basin programme.
The company also plans to drill two exploration wells and the gross well costs is estimated to be US$66mn, with potential recoverable reserve in excess of 100mn barrels of oil.
Steve Guidry, CEO of VAALCO Energy, said, “We are excited to begin drilling offshore Angola, especially given the recent significant discoveries made elsewhere in the Kwanza Basin where Block 5 is located. Having Sonangol as our partner, with their extensive knowledge of the basin, reaffirms our confidence in the potential of discovering commercial quantities of hydrocarbons on our 5,665 sq km concession.”
Sonangol will now hold a 60 per cent working interest in Block 5. VAALCO Energy, as operator, continues to hold a 40 per cent share.
