Cameroon: Glencore signs new exploration PSC
20 Jul 2009
Glencore Exploration Cameroon has signed a PSC for exploration in the Rio del Rey Basin with the Ministry of Industries, Mines and Technological Development and Cameroon’s National Hydrocarbons Corp, SNH. The contract was the third signed between the government and an oil exploration company within two weeks.
Glencore, under the terms of the agreement, will carry out exploration activities in the Bolongo Block. The company is required to conduct seismic acquisition, processing, and interpretation of at least 350 sq km of 3D data as well as drill one exploration well. Required activities have an estimated price tag of around $40 million. The contract is for a period of three years and may be extended depending on the results obtained.
Glencore is already present in Cameroon and has been carrying out activities on the Matanda Exploration Block in the Douala/Kribi-Campo Basin.
The signing of the 645-page contract follows two negotiations session between experts from the ministries concerned and those of Glencore Exploration. The negotiations took place at the SNH head office from May 11 and 12 to July 14 and 15 this year. The contract is the 15th signed within the framework of the December 1999 law instituting the Petroleum Code.
Glencore Exploration Cameroon,which will undertake the research, is the Cameroonian subsidiary of Glencore International AG which undertakes exploration and production activities in several countries worldwide including, Mali, Equatorial Guinea, DR Congo, Colombia and Russia. Production from these operations stood at 150,000 barrels a day in 2008.
The area, which has a water depth of 5 to 50 metres, has witnessed earlier exploration activities including the drilling of wells. Unfortunately, only one of them produced positive results. What is important to note, according to the Director of Exploration at the SNH, Tamfu Simon, is that objects indicating possible oil and gas have been found there. The research therefore rekindles hope considering that the block shares boundary with some blocks such as the Itindi which is presently under production.
Source: Petroleum Africa & All Africa