Cairn Energy has announced that it has entered into a farm-in agreement with Kosmos Energy and the National Bureau of Petroleum and Mines of Morocco (ONHYM) for an offshore Moroccan exploration block
The UK-based energy firm is set to acquire 20 per cent stake in the Cap Boujdour exploration permit, with operator Kosmos Energy and ONHYM sharing 55 per cent and 25 per cent respectively.
Drilling on the permit is scheduled for the second half of 2014, Cairn Energy said.
The permit is located 50km offshore Morocco, covering an area of 27,700 sq km in the Aaiun Basin in water depths of 1,000-3,000 metres.
Under the terms of the agreement, Cairn Energy is likely to pay for future exploration costs, including a 3D seismic survey, an initial exploration well in 2014 and, if successful, two appraisal wells, subject to maximum expenditure limits of the company.
Simon Thomson, chief executive of Cairn Energy, said, “This farm-in builds on our existing Atlantic Margin portfolio where we have a strategic presence across three countries in Morocco, Senegal and Mauritania. The new acreage offers transformational exploration potential in a frontier region where Cairn Energy is already well-established.”
Meanwhile, the UK-based company also announced that it had commenced drilling of the offshore FD-1 wildcat exploration well on the F prospect in the North African country, using the Cajun Express, a fifth generation semi-submersible drilling unit.
The well, located in 1,500 metres of water, is around 120km offshore Morocco in the Foum Draa Block. It has a total depth of 5,500 metres and operations are likely to take around 60 days for completion, Cairn Energy added.
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