The government of Equatorial Guinea has granted an extension of the Production Sharing Contract ("PSC") for the offshore Block G until December 31, 2040, covering both the producing Ceiba and Okume Complex Fields, Panoro Energy, a partner in the project, said.
Prior to the extension, the PSC expiry for the Ceiba Field was 2029 and for the Okume Complex field 2034. Panoro's management expects that Panoro's net 2P reserves will increase by between 2 to 3 million barrels as a result of the PSC extension.
John Hamilton, CEO of Panoro, said: "Upon entering the Block G Joint Venture we had always identified an upside in
extending the PSC expiry dates to realize the full potential in the Ceiba and Okume fields. On behalf of Panoro I would like to thank the Ministry and our Joint Venture partners on the collaborative effort in delivering this important agreement.
"The extension substantially increases Panoro's net 2P reserves in Block G and creates the time in which to unlock the material resources we believe to be present. We look forward to working with the Ministry and our Joint Venture partners to responsibly invest and further develop Block G to realise the full oil and gas potential of the block over the next 18 years."
The extension will support the next phase of investment by the Joint Venture partners with further development drilling anticipated to begin in the second half of 2023 to target material new production growth beyond our current guidance. Further information on these wells will be communicated in due course as planning is refined.
Panoro's full-year 2021 working interest (14.25%) production at Block G averaged 4,261 barrels oil per day on a proforma basis, accounting for approximately 56% of Panoro's total production in the year.
Trident Energy is the operator of Block G with a 40.375% working interest while Kosmos Energy holds a 40.375% working interest and GEPetrol a 5.0% working interest.