In March 2020 industry sources indicated that CNOOC West Africa Petroleum E&P SA (CNOOC) will not proceed with the intended farm-in agreement which was signed with Svenska Petroleum AB (Svenska) in August 2019. The agreement was subject to government approval which has not yet been granted.  The current political situation with two competing presidents claiming power in the country may have prompted CNOOC to withdraw.  In early August 2019, operator Svenska farmed out 55.55% working interest to CNOOC in its offshore Block 2 (Sinapa permit), and Blocks 4A, 5A (Esperanca), shallow to deep waters of the MSGBC Basin. Svenska, which was looking for partners since 2014, was understood to remain operator of all blocks with 23.03% interest, alongside with CNOOC (55.55%) and FAR Ltd (21.42%). CNOOC could have taken over operatorship following the 2020 drilling campaign.   This agreement, which was still subject to governmental approval, would have helped Svenska to proceed to the drilling of an exploratory well, planned for long, targeting the Atum prospect, before contract expiry in November 2020.    Background Information    Since 2014, Svenska was offering interests in the permits in exchange for the funding of a drilling work program. Svenska wanted initially to appraise the Sinapa oil discovery but since the discovery of the SNE field in neighbouring Senegal, the company acquired fresh 3D seismic in 2015 and identified new prospects, notably Atum in Block 2 and Anchova across blocks 2 and 4A. Atum is believed to be a shelf edge prospect similar to the SNE field.As of January 2019, a data room was set-up at Svenska Petroleumâs offices for the farm-in opportunity on Block 2.   In mid-January 2017 it was reported that Svenska renewed its farm-in offer for Block 2 (Sinapa permit), Blocks 4A and 5A (Esperanca permit) offshore MSGBC Basin. The company got a validity extension for its acreage and the permits are valid until November 2020.
Industry sources indicated that CNOOC West Africa Petroleum E&P SA (CNOOC) will not proceed with the intended farm-in agreement which was signed with Svenska Petroleum AB (Svenska) in August 2019. The agreement was subject to government approval which has not yet been granted.