Oil explorer Genel Energy is to farm into two key blocks off the Angola coast as part of a $280million deal.
The company, led by former BP boss Tony Hayward, has linked up with White Rose Energy Ventures to take 15% stakes in the blocks.
The two deepwater pre-salt prospects, in the Kwanza basin, could contain billions of barrels worth of oil, with the move described by the firm as ‘relatively low risk’.
Significant oil finds have already been made in adjacent blocks, with the Stena Carron due to start drilling on the prospects wtihin the next few weeks.
“This transaction provides a rare opportunity to enter into a low risk, multi-billion barrel resource play,” said Hayward.
“It fits with our stated strategy of securing high quality exploration opportunities targeting very material resources, and further enhances the opportunity to add significant shareholder value through the drill bit in Africa.
“Partnering with White Rose offers us a unique opportunity to secure a material interest in the exciting pre-salt play whilst managing our financial exposure to a level appropriate for a company of our size.”
The move will see Genel and WREV pay $59million for their share of one block from China Sonangol, and $222million to Statoil for their 15% stake in the other prospect.
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