Genel Energy will farm-in for 60 per cent of the licence interests to explore and produce oil and gas in the Sidi Moussa Offshore Block, offshore Morocco
The UK-based oil and gas major will join the current holders of Sidi Moussa comprise Serica Sidi Moussa, San Leon Offshore Morocco and Longreach Oil and Gas Ventures Limited, who collectively hold a 75 per cent equity interest.
The remaining 25 per cent interest is held by the Office National des Hydrocarbures et de Mines.
Longreach, Serica and San Leon will each transfer part of their interest to Genel to give the firm its 60 per cent holding pro rate according to their equity interests.
In return, Genel will pay US$1.3mn relating to past costs, as well as a further payment for the drilling of the commitment well of up to US$50mn.
The Sidi Moussa Offshore Block covers an area of 7,624 sq km with just one well having been drilled within the Sidi Moussa Licence area to date. Extensive 2D and 3D seismic work has been completed on these licences leading to the identification of a number of leads and prospects, and confirming significant resource potential.
Commenting on the transaction, Dr John Hurst, chief operating officer of Africa for Genel, said, "We are delighted to have reached this agreement to farm-in to the Sidi Moussa Offshore Block, which together with other acquisition activity, is establishing a material position for Genel Energy in
