psc - Kufpec

MAURITANIA
Ouadane - Mauritania
PSC A (KUFPEC: 13.084%),
PSC B (KUFPEC: 11.630%) and
Chinguetti EEA (KUFPEC: 10.234%)
The Chinguetti Exclusive Exploitation authorization
contains the Chinguetti Oil Field wherein net
oil production averaged 678 boepd during 2010,
and the Tevet Oil Discovery. The Joint Venture
continued its efforts during 2010 to optimize field
production and thus prolong field life. These efforts
were successful, possibly extending the field
life for several more years. Options for the future
decommissioning of the field are being evaluated.
PSC A covers the shallow water area of Blocks 3,
4 and 5; and contains the bulk of the Banda Gas
(with oil rim) Discovery. PSC B covers the deep water
area of Blocks 4 and 5 and contains the Tiof,
Tevet Deep, and Lebeidna Oil Discoveries. Development
studies on the Banda Gas Discovery were
completed and submitted to the Government
1st July 2010. Commercial and fiscal challenges
remain to be overcome before commerciality
can be declared.
The PSC A and PSC B licenses expired on 31st
July and 20th July 2009 respectively. The Joint
Venture Partners are attempting to negotiate
an extension to the current exploration period
of each PSC to continue their rights to the existing
discoveries and the remaining exploration
potential. The Mauritanian Government has
granted provisional extensions under the current
PSC terms until the conclusion of the ongoing
negotiations.
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