Exploration

Eco Atlantic's acquisition is official with government approval

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Block 1 spans 19,929 sq km. (Image source: Adobe Stock)

With the formal approval from the South Africa Department of Mineral and Petroleum Resources for both the Exploration Right and Section 11 transfer, Eco Atlantic Oil & Gas Ltd's 75% Working Interest and full Operatorship of Block 1 offshore South Africa is now official

This acquisition, completed through Eco's wholly owned subsidiary Azinam South Africa Limited, significantly expands the Company's Southern African Orange Basin footprint and positions it as a key operator. The remaining 25% interest is held by Tosaco.

Block 1, which spans a vast 19,929 sq km, straddles the border between South Africa and Namibia. It offers full margin transect coverage from the shoreline to deepwater (shore to 263km offshore, in water depths up to 1,000m), encompassing both shallow and deepwater exploration potential.

Gil Holzman, co-founder and CEO of Eco Atlantic, said, "As the Orange Basin continues to demonstrate its world-class hydrocarbon proof and potential, Eco's executive team has worked relentlessly over the past 18 months to secure a premier asset on the South African side of the basin. With the successful approval and execution of the Exploration Right and 75% Working Interest award, we are proud to have secured one of the largest and prospective blocks in the entire basin with a known hydrocarbon footprint - Block 1 - located directly on the South Africa-Namibia maritime border. Block 1 adds to our portfolio in the Orange basin which also includes Block 3B/4B operated by TotalEnergies.

"We are grateful for the productive collaboration with the Government of South Africa and its key agencies, particularly our valued partners at the Petroleum Agency South Africa ("PASA"). I was honoured to attend the signing ceremony yesterday at PASA's offices in Cape Town. This milestone reflects the dedication and strategic focus of our leadership team in securing an asset with existing hydrocarbon evidence and significant upside potential and aligning with our strategy to partner directly with governments to secure agreements in high potential secure jurisdictions and to lay groundwork for future partnerships.

"Our technical team has already begun analysing the extensive, high-quality 2D and 3D seismic, and well logs data, which materially accelerates our path to drilling while reducing early-stage exploration costs and timelines. The block's prior discoveries, including tested gas flows and oil shows, confirm the presence of an active petroleum system.

"Initial interpretation is underway, and we are in the process of delineating early leads to develop the exploration strategy. We are already seeing significant inbound interests from international oil companies and mid-tier partners. As a result, we anticipate launching a formal farm-out process in August with further updates to follow in due course."

Eni Ghana to drill Sankofa field

Eni's Deep Value Driller has arrived offshore Ghana for drilling activities. (Image source: Adobe Stock)

Eni Ghana has unleashed the Sankofa development plan, which will commence with drilling operations around 60 nautical miles off Ghana’s coast adjacent to the John Agyekum Kufour FPSO

Along with its Offshore Cape Three Points (OCTP) partners, Vitol Upstream Ghana Ltd and Ghana National Petroleum Corporation, the major has begun the Sankofa East 1X Side Track 2.

After concluding operations in Cote d'Ivoire, the company's high-end drillship called the Deep Value Driller (DVD) has arrived offshore Ghana to support exploration activities with its advanced automated technology, ensuring world class operational performance and safety.

The OCTP block partners have made sure to uphold transperency for all stakeholders and communities involved as they embrace sustainable production and advance energy security for Ghana.

Eni has been present in Ghana since 2009 with offshore hydrocarbon exploration and production activities, with an equity production of about 34,000 barrels of oil equivalent per day. The company is the operator of the OCTP project with a 44.4% share, in partnership with Vitol (35.6%) and GNPC (20%). The joint venture’s portfolio of projects also includes initiatives in the areas of training, economic diversification, access to water and sanitation, and access to energy.

Shell raises stake in Bonga Field offshore Nigeria

Shell’s interest in the OML 118 PSC will rise to 67.5%. (Image source; Adobe Stock)

Shell Nigeria Exploration and Production Company (SNEPCo) has acquired TotalEnergies EP Nigeria Limited's 12.5% stake in the OML 118 production sharing contract (OML 118 PSC), an oil mining lease offshore Nigeria that includes the Bonga field

This raises Shell’s interest in the OML 118 PSC from 55% to 67.5%.

As the OML 118 PSC operator, SNEPCo currently produces from the Bonga field via the Bonga Floating Production Storage and Offloading (FPSO) vessel and announced the development of the Bonga North field in December 2024.

“Following our final investment decision on Bonga North last year, this acquisition brings another significant investment in Nigeria deepwater that contributes to sustained liquids production and growth in our Upstream portfolio,” said Peter Costello, Shell’s President, Upstream.

The transaction is likely to be completed before the year-end, given all regulatory approvals and closing conditions are in place.

Also read:

SNEPCo reaches FID on Bonga North offshore Nigeria

Petrobras to restore interest in Nigerian deepwaters

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Petrobras had previously operated the Agbami Field in Nigeria before dropping out. (Image source: Adobe Stock)

Brazil's state oil company, Petrobras, has expressed interests to invest in Nigeria's frontier deepwater acreage

This comes ahead of the 2025 Nigeria-Brazil Strategic Dialogue Mechanism as a major step towards bilateral cooperation that saw the revival of the company's interest in the region after previously having left the Agbami Field where it was operating

The positive dialouge was an outcome of the interministerial review meeting chaired by Nigeria's Vice President Kashim Shettima at the Presidential Villa, Abuja, to coordinate the country's preparations for the second session of the SDM scheduled for June.

"The presence of six ministers and the Solicitor-General of the federation in this review meeting ahead of the second session of the Nigeria-Brazil Strategic Dialogue Mechanism shows the importance we have attached to our relationship with Brazil.

"We have not maximally capitalised on the fraternity between us and Brazil, but it is better late than never. The upcoming SDM presents an opportunity to execute sector-specific Memoranda of Understanding (MOUs) and unlock investment flows," said Shettima.

Nigeria is also keen on leveraging Brazil's global reach as the country will also be hosting this year's high-end summits such as BRICS, G20 and COP30.

Earlier, Minister of Foreign Affairs, Ambassador Yusuf Tuggar, confirmed ongoing engagements with Petrobras, saying, "Apart from Ethanol, which they are hoping to engage the NNPCL for blending, Petrobras is also being actively engaged, and we expect they will form part of the delegation to Nigeria. Petrobras is no longer active in Nigeria, but they are very keen on coming back to Nigeria. They said they want frontier acreage in deep waters."

Capricorn's Egypt assets now combined

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The new concession agreement comes with improved commercial terms. (Image source: Adobe Stock)

The Egyptian General Petroleum Corporation (EGPC) has approved the consolidation of eight of Capricorn's existing Egyptian concession agreements into a new, single integrated concession agreement

The company jointly holds a 50% participating interest with the concessions operator, Cheiron Oil and Gas Limited. The integrated concession agreement is subject to Egyptian Parliamentary ratification which is expected to take place in 2025.

The new concession agreement comes with improved commercial terms and a refreshed primary development term to support increased investment, for the benefit of all parties.

The Badr El Din (BED), Obaiyed, North Alam El Shawish, North Matruh, Sitra, BED 3, and BED 2 and BED 17 development concessions, along with the North Um Baraka exploration concession, will now be combined into a single integrated concession. It will have a 20-year scope through an initial 10-year term, plus two five-year extensions for the development areas.

The enhanced fiscal terms include profit share of 27-29%, a merged single cost pool, 40% cost recovery over four years, and excess cost recovery of 20%.

An improved gas price of US$4.25/mmbtu for incremental gas produced from existing fields and new discoveries agreed to promote increased gas production.

Four additional blocks will be incorporated into the BED 17 development area.

The direct award of two open exploration areas adjacent to existing acreage will be added to the integrated concession which will require the drilling of 11 gross exploration wells.

Randy Neely, chief executive, Capricorn Energy PLC said, “This agreement marks a key milestone in unlocking further value in our Egyptian Western Desert asset base. The three partners: EGPC, Cheiron and Capricorn have put in significant time and effort to construct a business case that allows all parties to benefit. With the improved terms and consolidation of the development leases, the joint venture partners will be able to justify increased investment to unlock significant contingent resources, leading to increased production and reserves for the benefit of all stakeholders. The development potential of these assets is fully capable of being funded by cashflows generated in Egypt.

With the successful outcome of this milestone in sight, we, along with our partners, will now begin the work to achieve a similar outcome for the Alam El Shawish West (AESW) joint venture.

We believe this agreement is a very important step in restoring Capricorn as a premier small-cap energy company. In addition to our achievements in Egypt, we continue to actively evaluate material opportunities in the UK North Sea. Combined, these initiatives will make Capricorn significantly more sustainable as a business and attractive as an energy investment.”

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