Dragon Oil approved for Tunisia farm-in
ENOC-controlled company takes 55% interest in Bargou joint venture
Dragon Oil, a London-listed independent majority owned by Dubai state petroleum company ENOC, has been approved to work a farm-in offshore Tunisia after receiving the requisite approvals from Tunisia’s Hydrocarbons Consultative Committee.
The company initially broke the news of its conditional deal in October 2011.
Cooper Energy, previously the majority owner of the interest in the Bargou joint venture, has ceded majority control and the operator ship to Dragon Oil, which now has a 55% working interest in the prospect. Cooper Energy retains 30% and oil junior Jacka Resources holds 15%.
The Bargou field is highly prospective, in water depths of 50m to 100m within the Pelagian Basin, covering an area of 4,616km2. Hammamet West-3 is a major focus of the exploration activity in the permit.
Dragon Oil will pay 75% of the cost to drill the Hammamet West-3 well, according to an agreed well plan scope, up to a capped well cost of US$26.6 million (on a 100% basis). If the well cost exceeds $26.6 million, costs in excess of this amount will be shared between Cooper Energy and Dragon Oil pro rata to their participating interest.
Commenting on the deal in October, Dragon Oil CEO Abdul Jaleeel Al-Khalifa said “Dragon Oil is pleased to work with Cooper Energy and Jacka Resources to drill the Hammamet West-3 well to test the development potential of the Abiod Formation in the Bargou Permit. We believe our experience offshore Turkmenistan with complex and challenging reservoirs will be useful in better understanding, appraising and developing the Hammamet West Oil Field.”
Dragon Oil has built a reputation for successful offshore drilling through its development of the Cheleken Contract Area offshore Turkmenistan.