PERTH (miningweekly.com) – Australian oil and gas major Woodside has finalised a farm-in agreement with majors Noble Energy and Glencore over the Tilapia production sharing contract (PSC), off the coast of Cameroon.
Under the agreement, Woodside would acquire a 30% nonoperating interest in the 3 875 km2 block, which is located in water depths ranging from shoreline to 1 100 m.
Noble Energy would retain a 46.67% interest in the project, and would continue to act as operator, while Glencore would hold the remaining 23.33% interest.
An exploration well, dubbed Cheetah, would be drilled in 2015.
Woodside has been moving to increase its international foothold since 2012, with the miner announcing earlier this year the formation of a joint venture with fellow-listed Beach Energy over the Lake Tanganyika project, in western Tanzania.
The oil and gas major had also signed up for farm-in agreements offshore Morocco and in Gabon.
“Following our recent announcements on Gabon, this farm-in opportunity consolidates our regional position and extends our relationship with Noble as a valued and experienced operator,” said Woodside CEO Peter Coleman.
“As part of our global exploration portfolio build, our entry into the Tilapia PSC gives us exposure to an emerging play in a proven basin with an exciting near-term drilling opportunity.”
The agreement would be subject to regulatory and government approvals.