Chariot Agrees Brazil Farm Out with AziLat

By Joseph R. Fonseca
Thursday, August 21, 2014
Barreirinhas Basin

Chariot Oil & Gas Limited, the Atlantic margins focused oil and gas exploration company, announced that its wholly owned subsidiary, Chariot Brasil Petróleo e Gás Ltda., has signed a farm-out agreement with AziLat Limited  through its local subsidiary AziBras Exploração de Petróleo e Gás Ltda.

Following completion of this agreement, which is subject to the approval of the Brazilian authorities, AziLat will hold a 25% equity interest in Chariot's BAR-M-292, BAR-M-293, BAR-M-313 and BAR-M-314 blocks in the Barreirinhas Basin, in return for paying 50% of the 3D seismic acquisition and processing costs to be incurred across these blocks. Chariot will remain Operator with a 75% equity interest.

AziLat is a subsidiary of the Azimuth Group. Azimuth holds 41 oil and gas exploration licences in seven countries worldwide including Namibia, where AziNam, also a subsidiary of Azimuth, is partnered with Enigma Oil and Gas (PTY) Ltd., a wholly-owned subsidiary of Chariot, in the Central Blocks. Azimuth is backed by financial sponsor Seacrest Group, a global energy investment group.

The BAR-M-292, BAR-M-293, BAR-M-313 and BAR-M-314 blocks, which span a combined area of 768km², are ocated in the Barreirinhas Basin, approximately 70km offshore, and lie in water depths ranging from 85m to 1,700m. The Barreirinhas Basin lies on the north-eastern coast of Brazil, along the transform margin and is conjugate to basins in Côte d'Ivoire and Ghana, where major oil and gas fields have been discovered in recent years. Evidence suggests that these same petroleum systems are present offshore Brazil, making this a giant potential frontier basin.

From existing 2D seismic datasets Chariot has identified on-block evidence of sufficient burial of the Cenomanian-Turonian source rock for hydrocarbon generation, supported by potential seismic direct hydrocarbon indicators. Further to this, a large roll-over structure has been identified with deepwater turbidite seismic facies and fan entry points. Whilst this is a frontier province with only three deepwater wells to date, the giant discoveries on the conjugate margin in Ghana have demonstrated the same deepwater play components of source, reservoir and seal encountered in wells drilled adjacent to Chariot's acreage.
 
In order to assess this potential, Chariot is in the process of tendering for a 3D seismic survey of approximately 1000km2 across its four offshore blocks which it expects to carry out in H1 2015. This will fulfil all current commitments on its blocks in Brazil. The Environmental Impact Assessment, a requisite process to complete in advance of commencing this survey, is currently underway. 

An additional seismic partnering process has been initiated on this acreage to further mitigate risk and financial exposure. Updates to the market will be provided as appropriate. Subject to additional partnering, drilling could take place in H2 2016 or 2017.

Larry Bottomley, CEO commented, "We are delighted to announce this partnership with AziLat which continues the delivery of our risk management strategy of levered partnering. This unsolicited approach is testament to Chariot's ability to access high potential exploration acreage, and has been founded on the relationship we have developed with Azimuth in Namibia. In line with our strategy, we will look to add further partners to fully fund each phase of major investment as we continue to de-risk these assets.

Our recent placing and this farm-out have provided us with the financial flexibility to accelerate our work programme and undertake the 3D acquisition across our Brazilian acreage as soon as possible, allowing us to take advantage of the current seismic market conditions. We are pleased with our positioning in our blocks in Brazil, where, as with our other assets, there is high industry activity and interest. Ten deepwater wells are to be drilled in the Barreirinhas Basin within the next four years, with one expected to commence in the next six months."


Contracts

Nakilat Upgrades VSAT Service for LNG/LPG Fleet

Nakilat, the shipping arm of Qatar’s liquefied natural gas sector, has entered into a contract with Global Eagle Entertainment Inc.’s Emerging Markets Communications

Fred.Olsen Energy, Hyundai Settle Rig Dispute

Rig firm Fred. Olsen Energy and South Korean yard Hyundai Heavy Industries settle dispute over construction of semi-submersible rig Bollsta Dolphin. Shares in Fred.

NordLB to Shed Shipping Loans to KKR

German state-owned lender NordLB and KKR Credit said they had reached an agreement by which KKR Credit will acquire a $1.5 billion portfolio of shipping loans from

Legal

US Coast Guard Announces Final TWIC Rule

The U.S. Coast Guard announced Tuesday the publication of the final rule concerning Transportation Worker Identification Credential (TWIC) reader requirements. The

Riyadh MOU PSC CIC on Pilot Transfer Arrangements

Six (6) countries (Bahrain, Kuwait, Qatar, Saudi Arabia, Oman and UAE) of the Riyadh MoU in the Gulf Region are planning the following PSC Concentrated Inspection

Ukraine to Sue Russia Over Maritime

Ukraine plans to launch legal proceedings against Russia for violating United Nations convention with its annexation of Crimea, the Moscow Times quoted Ukraine’s

Offshore

MISC Enters Thai Offshore O&G Market

Energy related maritime solutions and services provider MISC Berhad (MISC) has made inroads into Thailand’s offshore oil and gas market for the first time.

Cathelco MGPS for Latest Lamprell-built Jack-up

Cathelco will provide a marine growth prevention system (MGPS) for the latest in a series of jack-up drilling rigs to be built by Lamprell, the UAE based  leading provider of fabrication,

New System Monitors Vessel Motion, Impact

UK Electronic Solutions (part of NSSLGlobal Group), has announced Oceanic Dynamics, a new self-contained motion and impact monitoring system suited to offshore vessels.

Energy

MISC Enters Thai Offshore O&G Market

Energy related maritime solutions and services provider MISC Berhad (MISC) has made inroads into Thailand’s offshore oil and gas market for the first time.

Pressure Mounting on VLGCs Rates - Drewry

A wave of cargo cancellations from the US is putting additional pressure on VLGC rates, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry.

China Receives First American LNG Cargo

The first cargo of US liquefied natural gas (LNG) to target the world’s largest energy consumer arrived Monday at the Chinese port of Yantian in Shenzhen near Hong Kong.

News

USCG Evaluates Comms Equipment in Alaska

Coast Guard Research and Development Center evaluates state-of-the-art communications equipment and Next Generation Incident Command System in Alaska   At nearly 663,

Grand Bahama Shipyard Adds Four Executives

Grand Bahama Shipyard Limited (GBSL), a Caribbean shipyard providing retrofit, refurbishment and revitalization to cruise and commercial vessels, has added four

BG Freight Line Orders Four Containerships

BG Freight Line, a fully owned subsidiary of Peel Ports Group, is to receive new tailor-made short sea container feeder vessels optimized for the company’s Irish Sea Hub services.

Offshore Energy

MISC Enters Thai Offshore O&G Market

Energy related maritime solutions and services provider MISC Berhad (MISC) has made inroads into Thailand’s offshore oil and gas market for the first time.

Cathelco MGPS for Latest Lamprell-built Jack-up

Cathelco will provide a marine growth prevention system (MGPS) for the latest in a series of jack-up drilling rigs to be built by Lamprell, the UAE based  leading provider of fabrication,

US Oil Drillers Add Rigs for 8th Week in Row

U.S. drillers this week added oil rigs for an eighth consecutive week, the longest recovery streak in the rig count in over two years, as crude prices rebounded

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1357 sec (7 req/sec)