Panoro Energy ASA and BW Energy have announced the signing of production sharing contracts (PSCs) for the exploration blocks Niosi Marin and Guduma Marin (formerly named G12-13 and H12-13) with Gabon’s Petroleum Minister and Minister of Economy. BW Energy holds 37.5% working interest and is the operator of the blocks, which significantly expands the resource base for infrastructure-led exploration in Gabon.

“Panoro has been present in Gabon since 2008, during which time we have organically grown reserves and production at the Dussafu Marin Permit, developing an in-depth understanding of the hydrocarbon geology as evidenced by our 89 per cent E&A drilling success rate in the regionally prolific pre-salt Gamba formation. 

Blocks Niosi and Guduma are a logical and contiguous extension of our footprint in a core area where we will be able to leverage our expertise to mature and high grade the exploration potential on the blocks in the coming years.  Panoro remains committed to growing its presence in Gabon and is delighted to further expand its partnership with the Gabonese Government and other key stakeholders,” John Hamilton, CEO of Panoro, commented.

“Most of the Niosi Marin and Guduma Marin acreage is within tie-back distance to existing infrastructure, enabling fast-track, low-cost development of future discoveries. We have proven our ability to create significant value in the Dussafu licence, where we are close to completing the first phase of Hibiscus / Ruche to bring production to nameplate capacity of 40,000 barrels per day.

These licence awards further underpin BW Energy’s commitment to Gabon and clear ambition of growing production and cash flow generation,” said Carl K. Arnet, the CEO of BW Energy.

The Niosi and Guduma blocks cover a surface area of 2,974 km² and 1,927 km² respectively and are adjacent to the producing Dussafu Marin Permit (“Dussafu”) in which Panoro holds a 17.5 per cent interest and is partnered with BW Energy and Gabon Oil Company.  The Niosi block is also adjacent to the producing Etame Marin Permit which is operated by VAALCO Energy.  

Both Dussafu and Etame Marin continue to be successfully explored and developed by the respective partners with an estimated combined volume over 300 million barrels discovered to date, multiple fields put into production and extensive processing and export infrastructure installed.

The PSC covering the Niosi block has an initial exploration period of five years with a work commitment of new 3D seismic data acquisition and one well. The PSC covering the Guduma block has an initial exploration period of three years with a work commitment of geological and geophysical studies. Both blocks have an option to extend the exploration period and enter a second phase with an additional well commitment. 

Partners in the Niosi and Guduma blocks will be BW Energy (37.5 per cent and operator) and VAALCO Energy (37.5 per cent). Panoro Energy (25 per cent participating interest)