Asset A&D

PetroNor Acquires Svenska's Offshore Guinea-Bissau Interests

By Mahati K L
November 23, 2020
2 minutes read
PetroNor, Guinea Bissau

OSE-listed PetroNor E&P Ltd. has entered into an agreement with Stockholm-based Svenska Petroleum Exploration AB to acquire its wholly-owned subsidiary SPE Guinea Bissau AB, which holds a 78.57% operated interest in the Sinapa and Esperanca licenses located off the coast of Guinea-Bissau. The financial terms of the transaction have not been disclosed.

The Sinapa (Block 2) and Esperanca (Blocks 4A & 5A) licenses cover a contiguous area of approximately 5,725 sq. km in the Casamance Salt Sub-basin, in water depths ranging from 10 to 600 meters. The licenses contain the Sinapa East discovery, along with several other prospects. The Atum and Anchova prospects are analogous to the Sangomar field in Senegal, and are ‘drill ready’, benefitting from significant technical work delivered to date by Svenska and license partner FAR Ltd.

Work commitments on the blocks include drilling of one exploration well in the Esperanca license, and the re-evaluation of prospectivity in the shallow water portion of both licenses using the reprocessed data. Assets contain prospective resources (best estimate) of approximately 750 million barrels of oil (MMbbls) and 2C Contingent Resources of 10.5 MMbbls (for the Sinapa East discovery) as of December 31st, 2019.

“This is a key strategic addition to PetroNor’s portfolio building in this highly attractive exploration trend. Along with the reinstated A4 licence in The Gambia and our acreage in Senegal, the equity available to potential farminess 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,” said Knut Søvold, CEO of PetroNor.

PetroNor is a 50:50 joint venture between Petromal LLC, a subsidiary of National Holding LLC of Abu Dhabi, and NOR Energy AS. The company is currently engaged in upstream operations in the Republic of Congo, Senegal, Gambia and Nigeria.

Privately-held Svenska Petroleum operates as a wholly-owned subsidiary of Petroswede AB, which in turn is indirectly owned by Saudi businessman Sheikh Mohammed H. Al-Amoudi. The company is focused on upstream activities in West Africa and the Baltic region, and currently holds E&P interests in Cote d’Ivoire, Nigeria, Guinea Bissau and Latvia.

The transaction is subject to customary closing conditions, including the receipt of government approvals.

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