A farm-out agreement between Tangiers Petroleum and Galp Energia has been approved, paving the way for the partnership to spud the TAO-1 offshore Morocco in June.
Under the agreement, Galp is due to reimburse Tangiers' US$7.5million for back costs. The funds will help Tangiers pay 33% of the TAO-1 well drilling costs. TAO-1 is in the Tarfaya offshore block. Tangiers has a 25% stake in the Tarfaya, Galp has 50%, and state-owned Office National des Hydrocarbures et des Mines has the remaining 25%.
At its March capital markets day, Galp said its scheduled drilling program for 2014 includes drilling 7-9 exploration and appraisal wells, including one exploration well to be drilled in the Trident oil prospect in Morocco.
Trident is in the Tarfaya offshore area, in which Galp Energia signed a farm-in agreement, taking a 50% stake and operatorship, in 2012. The area includes eight exploration permits, known as Tarfaya Offshore I to VIII, covering 11,281sq km, on the Atlantic Margin, offshore Morocco, in less than 200m water depth.
According to Galp, the Tarfaya offshore permits are located in an under-explored area and within a proven petroleum system, containing multiple prospects and leads within Jurassic and Cretaceous sediments, as well as emerging potential within the Tertiary and Triassic formations. The already identified prospects in the Tarfaya offshore area include Assaka, Trident, Tarfaya Marin-A (TMA) and La Dam.