PetroNor Acquires Offshore Assets in Guinea Bissau

November 20, 2020

Credit: PetroNor
Credit: PetroNor

Oslo-listed oil and gas company PetroNor has acquired SPE Guinea Bissau AB, a Guinea Bissau subsidiary of Sweden-based Svenska Petroleum. 

The acquisition entitles sub-Saharan Africa focused PetroNor to become the operator of the Sinapa (Block 2) and Esperanca (Blocks 4A and 5A) licenses offshore Guinea Bissau subject to Government approval. The company will have an equity interest of 78.57% in the two blocks.

PetroNor said the licenses have been extended for 3 years and are valid until October 2, 2023 "maintaining the same attractive fiscal terms."

The company said that the transaction was aligned with its strategy to grow position "in this highly prospective trend that continues to be a hotspot for exploration activity."

The assets contain the Atum and Anchova prospects which are said to be analogous to the "world-class" Sangomarfield in Senegal. The two prospects are estimated to contain net combined P50 recoverable prospective resources of 568 mmbo (PDC 2019 CPR for SPE).

"The prospects are ‘drill ready’, benefitting from significant technical work delivered to date by Svenska Petroleum Exploration (SPE) and partner FAR Ltd," PetroNor said.

PetroNor further said it was starting a review of rig market with a view to starting drilling activity in 2021/22.

Commenting on the transaction, PetroNor CEO Knut Søvold said: "This is a key strategic addition to PetroNor's portfolio building in this highly attractive exploration trend. 

"Along with the reinstated A4 license in The Gambia and our acreage in Senegal, the equity available to potential farminees is a highly attractive material opportunity. PetroNor is continuing its work to bring in partners to fund a drilling campaign across all assets in the next few years." 

Commercial terms of the transaction were not disclosed.

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