Cairn Energy has struck a $26million deal to farm into Chariot Oil and Gas’s exploration project off Mauritania.
The independent oil and gas group will take a 35% stake in the block, off the West African coast, which is operated by Chariot in partnership with the Mauritanian state oil company.
Under the terms of the deal, Cairn will pay back costs and seismic fees before taking on almost 40% of exploration costs for the 12,175 square kilometre site, which sits to the north of existing discoveries in Mauritania at depths of up to 2000m
“The opportunity in Mauritania presents an attractive new country entry, building on our existing Atlantic Margin portfolio in Senegal and Morocco,” said Cairn chief executive Simon Thomson.
“By developing an increased strategic presence in the under-explored and highly prospective new plays in this region, we can generate both operational and geological synergies and fully apply our proven frontier exploration skills.”
Cairn will have the option to increase its stake and take operatorship of the block before the first stage of the licence expires in June 2015.
“We are pleased to have agreed a partnership on C19 in Mauritania with Cairn, whose focus on exploration-led growth is aligned with Chariot’s objective of creating transformational value for stakeholders through the discovery of material accumulations of hydrocarbons,” said Chariot chief executive Larry Bottomley.