Tangiers Petroleum gets approval from Morocco to sell stake in offshore block

offshore morocco-Norsk Oljemuseum wcThe maiden well is reportedly targeting 758mn barrels of oil. (Image source: Norsk Oljemuseum/Wikimedia Commons)Morocco’s Ministries of Energy and Finance have approved the transfer of a 50 per cent interest in the Tarfaya Offshore Block from Tangiers Petroleum to Galp Energia

Tangiers Petroleum will retain a 25 per cent interest in the Tarfaya Offshore Block, the company said.

Galp Energia would assume the operatorship of the Tarfaya Offshore Block, which comprises of eight exploration permits, according to the joint signed order from the Ministries.

The Portuguese company is also expected to pay US$40.5mn, which would include up to US$7.5mn in back costs reimbursable to Tangiers Petroleum and the cost of an exploration well — TAO-1, to be drilled within the Tarfaya Offshore area.

The maiden well is reportedly targeting 758mn barrels of oil (P50 prospective resource) with Galp Energia planning to spud the well in the first half of 2014.

Eve Howell, executive chairman of Tangiers Petroleum, said, “We are very pleased to receive the approval from the Moroccan government and Galp Energia can now source and contract a drilling rig for the TAO-1 well, which is expected to be drilled in the first half of 2014.”

The Moroccan government has also approved a six month extension to the first extension period for the Tarfaya Offshore Block. This means the joint venture partners will have until February 2015 to evaluate the results of the TAO-1 well and decide whether to enter the second extension period, according to Tangiers Petroleum.

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