Edinburgh-based explorer Bowleven has concluded the award process for the Etinde permit in Cameroon.
The Etinde Exploitation Authorisation (EA) gives Bowleven and its joint venture partners, which will include SNH, the Cameroon State oil company, development and exploitation rights over block MLHP-7 for an initial period of 20 years with the option to renew for up to a further 10 years.
The partners’ initial development plans are focused on the block’s IM gas field, including plans for additional gas offtake facilities to be built, including a centre for liquefied natural gas.
Earlier this year Bowleven sold 50% of its interest in the Etinde permit to Lukoil and New Age for $250million.
The transaction allowed the firm to accelerate appraisal drilling, aimed at confirming the additional resources available for the expanding range of gas sales opportunities, Bowleven said in a statement.
The formal award of the EA satisfied one of the remaining conditions of the Lukoil and NewAge farm-out transaction. In July Bowleven had to terminate its strategic alliance with Petrofac to proceed with the farm-out.
Approval by the Cameroon government of the transfer of the equity interest and operatorship is the principal condition still to be satisfied, Bowleven added.
“The award is a significant milestone and enables the progression of the exciting development plans on Etinde,” said Kevin Hart, Bowleven’s chief executive.
“This is an important project for Cameroon and we are pleased to be able to support the country in its aim to further develop its hydrocarbon resources”.
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