Rialto Energy (Cote d’Ivoire) Ltd signed a memorandum of understanding (MOU) with the Cote d’Ivoire Ministry of Oil & Energy, the state owned oil & gas company PETROCI, and Vitol E&P to replace the existing production sharing contract (PSC) for Block CI-202 with a new PSC on amended terms.
The new PSC comes after Rialto agreed to sell 65% interest in Rialto Cote d'Ivoire to Vitol last April in return for their provision of an initial US$50 million to fund appraisal and development activities on the block.
The new PSC is expected to be signed before November 9, 2013 when the second exploration period under the current PSC comes to an end, and will have three consecutive exploration periods over a total of seven years from signature.
Substantially all petroleum costs incurred to-date by Rialto on Block CI-202 will be carried over for recovery in the new PSC. The outstanding exploration expenditure commitments under the current PSC will be deemed satisfied under shareholding splits agreed for the new PSC. As a result, all remaining liabilities under the current PSC will be deemed to have been satisfied upon award of the new agreement;
Following the recent submission by Rialto of a revised field development plan for the development of Gazelle, once it is approved by the Ministry and the new PSC has been signed, a new Exclusive Exploitation Authorisation will be issued to replace the existing one.
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