BP joins hydrocarbons search offshore Namibia

Offshore staff

LONDON -- BP has agreed to farm into an exploration license off southern Namibia, West Africa.

BP will take 50% of the interest in southern block 2714A (license 20) held by Chariot Oil & Gas subsidiary Enigma Oil & Gas Exploration. In June, Petrobras elected to take up operatorship of the block and retains a 50% stake.

Under the terms of the farm-out, BP will cover Chariot’s cost of drilling the first exploration well, and past costs incurred. Chariot will use funds received and retained through this deal for further exploration and appraisal work.

Block 2714A is in the Orange basin, covering an area of 5,481 sq km (2,116 sq mi). Nimrod is the largest identified prospect in the license.

Enigma has signed a separate farm-out agreement with PGS, under which the latter will take a 10% interest in Chariot’s central blocks offshore Namibia (License 19, covering blocks 2312 A & B and the northern halves of 2412 A & B).

In return, PGS will fund 50% of a planned 3D GeoStreamer seismic program. Chariot will retain 90% of the license following completion of the farm-out.

The central blocks are in the Luderitz and Walvis basins and extend over 16,801 sq km (6,487 sq mi). The 3D seismic will take in areas of interest highlighted by previously acquired 2D seismic.

The $25-million survey, due to start in 4Q 2011, will focus on parts of the licence where the Klipspringer, Hartebeest and Oryx leads have been identified. It will cover a minimum area of 2,500 sq km (965 sq mi) and should take around 75 days to complete.

Processing and interpretation results should be issued in 2Q 2012. Chariot says the central blocks are the least mature of its Namibian portfolio, and 3D data is needed to convert the leads into drillable prospects.

08/09/2011



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