Thursday, 15 July 2010
Total acquires share of Block 1 in the Joint Development Zone
Total has bought Chevron’s 45.9 per cent share in Block 1 in the Joint Development Zone (JDZ), Nigeria. Total will operate the block collaboratively with a number of international oil producers including Sinopec's subsidiary Addax, Dangote Energy Equity Resources and Sasol Exploration and Production Nigeria.
The acquisition is in line with Total’s plans to expand its operations in Africa, particularly in the Gulf of Guinea. At present Total’s operations in Africa produce around 750,000 barrels of oil equivalent per day accounting for 33 per cent of Total’s overall production.
The JDZ is regulated by a treaty signed by Nigeria and Sao Tomé and Principe in 2001 for a period of 45 years. The license granted to Total extends over an area of approximately 700 m2 in water depths ranging from 1,600 to 1,800m. Within this license, a discovery was made in 2006 (Obo-1 well). The proximity of the Total-operated licenses and facilities in Nigeria will enable cost reductions in developing the license’s resources.
To find out more about Total please visit Total’s web site, which you can find here.
For more news and expert analysis about Nigeria, please see Nigeria Focus and Nigeria Politics & Security.
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