Offshore staff
OSLO, Norway — DNO has entered an agreement to assume ownership from RAK Petroleum of Mondoil Enterprises LLC.
Mondoil has a 33.33% indirect interest in Foxtrot International, a privately owned company which operates offshore production of gas and associated liquids in Côte d'Ivoire.
“The move into Côte d'Ivoire is an important first step into a highly prospective region offering a broad set of growth opportunities through acquisition of producing fields, development assets and exploration licenses,” said Bjørn Dale, DNO’s managing director.
He added that the company is already evaluating other opportunities in the region.
Foxtrot International has a 27.27% operated stake in Block CI-27 offshore Côte d'Ivoire. Gas is produced with condensate and oil from four offshore fields connected to two fixed platforms, currently supplying more than three-quarters of the country’s gas needs.
In addition, the company has 24% of offshore exploration license Block CI-1.
The four fields in CI-27 are Foxtrot, which began production in 1999, the Mahi gas field developed in 2012, and Marlin (oil and gas) and Manta, which started producing in 2016, following a four-year, $1 billion development.
Gas from the fields is transported by pipeline to fuel power stations in Abidjan under a take-or-pay agreement enacted in June 1999 and subsequently increased to 140 MMcf/d, with a current price of $6.47 per MMBtu.
Early in 2020, the Block CI-27 joint venture started a new $350 million field development and onshore facilities construction project to supply gas to two new power stations. The program is nearing completion following the completion of three new and two sidetrack wells, with the final well (a sidetrack) currently drilling.
The added processing and well capacity should lift overall gas supply to more than 230 MMcf/d, subject to electricity sector demand and well performance. And up to two more wells will likely be drilled in future to maintain the higher production capacity.
During the first half of this year, gross sales averaged 200 MMcf/d of gas and 1,500 bbl/d of oil and condensate, with the oil and condensate (and limited quantities of gas) sold to the local refinery.
DNO estimates the overall cost of the Mondoil transaction at $117.25 million.
08.22.2022
