On 6 June Alexander Dyukov, Chairman of the Management Board of Gazprom Neft, and Candido Nsue Okomo, Director General of GEPetrol, the national oil company of Equatorial Guinea, signed a cooperation agreement in the Kremlin. The signing of the agreement was witnessed by Russian President Dmitry Medvedev and the President of Equatorial Guinea, Teodoro Obiang Nguema Mbasogo.
The document regulates key areas of cooperation between Gazprom Neft and GEPetrol within the framework of implementing Product Sharing Agreements (PSAs) signed in 2010 for geological prospecting of blocks T and U on the Equatorial Guinea shelf. In particular, the agreement sets out the fundamental principles for managing the project and the procedures for making key decisions.
The registration of Gazprom Neft Equatorial in Equatorial Guinea is currently being finalised and, once created, the company will represent Gazprom Neft in the project for geological prospecting of blocks T and U. Analysis of the results of seismological exploration conducted in February 2011 is scheduled to be completed by the end of 2011/start of 2012. “Projects in Equatorial Guinea enable Gazprom Neft to simultaneously achieve several objectives: creating a production centre in West Africa, gaining new experience of managing international projects and broadening our shelf expertise,” commented Alexander Dyukov, Chairman of the Management Board of Gazprom Neft.
Under the project, Gazprom Neft is developing two off-shore blocks: T (located in the Niger delta basin) and U (Rio Muni basin) in Equatorial Guinea, on the basis of a Product Sharing Agreement executed in June 2010 with the Ministry of Mines, Industry and Energy of Equatorial Guinea and GEPetrol. The agreement was ratified by Equatorial Guinea’s president in August 2010.
According to preliminary estimates, reserves in the two blocks may total 110 million tones of oil equivalent. The deposit’s expected operation period is 30 years for oil and 35 years for gas.