A CONSORTIUM in Gabon in which PetroEnergy Resources Corp. has participating interest has secured an extension to its exclusive oil exploitation rights in the African country for another 10 years, the Yuchengco-led company said on Wednesday.
PetroEnergy told the stock exchange the government of Gabon and the Etame Marin consortium had successfully executed the amendment to the production sharing contract to three oil fields — Etame, Avouma/Tchibala and Ebouri.
The 10-year extension has two additional five-year extension options.
“Having produced more than 100 million barrels of oil since production started in 2002, the extension of the concession offers opportunities for both the Government of Gabon and the Consortium Partners for additional investments, growth, and revenues,” PetroEnergy said.
PetroEnergy holds a 2.525% participating interest in the Etame Marin block. The other consortium members and their respective participating interests are: Addax Petroleum Etame, Inc. (33.90%); Sasol Gabon S.A. (30.00%); and Operator VAALCO Gabon S.A. (33.575%).
The amendment commits the consortium partners to undertake new drillings and technical studies to be completed within two years from its effectivity.
PetroEnergy said given past production from the block, the consortium was confident that the committed drilling program for two development wells and two appraisal wells would further enhance the field’s long-term commercial value. — Victor V. Saulon
