RoyalGate Energy has informed Equatorial Guinea that it intends to begin arbitration over Block Z, alleging “material breaches” from the Ministry of Mines and Hydrocarbons.
The major point flagged by the charges concern a contract win from late 2014. Swiber at the time said it had won a $710 million contract in West Africa.
RoyalGate Energy said it will drill the Tulip Upper Isongo discovery and Tulip Massive Isongo prospect in Equatorial Guinea.
The Z-1 well is set to be drilled in the first quarter of 2016 close to the location of previous offset wells and in the vicinity of known producers.
Located to the north of Bioko Island and south of the Marathon Oil-operated Alba field, Block Z has estimated gas reserves of more than 3.6 tcf.
