Chevron confirms Sierra Leone blocks

by on September 26, 2012 1:14 pm BST

The US supermajor has been handed a 55% interest in blocks SL-08A and SL-08B where it will also be operator, it said on Wednesday.

Reports in recent months have shown that Chevron had won block interests off Sierra Leone and would be partnered by Odye and Noble.

However, the size of each party’s stake, as with other awards in the country’s concession round, was being discussed.

Noble is picking up a 30% stake in the play with Odye going home with 15%. Sierra Leone National Oil Company has a 15% back-in option at final investment decision time.

The two blocks are situated between 120 kilometres and 180 km off Sierra Leone in average water depths ranging from 1500 metres to 3000 metres. The total acreage is spread over 5500 square km.

Chevron vice president George Kirkland said: “We have a strong presence in the region,
and this new play will capitalize on our global deep water experience and
exploration capabilities.”

Sierra Leone’s Petroleum ­Resources Unit raised industry eyebrows by
admitting that July’s awards process was “like a forced marriage”.

spokesman said that the 2011 Petroleum Act provided that one or more
companies could be granted a licence “and if they are truly interested
in our agenda, they will find a way to work with each ­other”.

Opposition party politicians have criticised the process as lacking in
transparency, and slated the government for proceeding with awards
before the Petroleum Act had been properly described by administrative
guidelines and regulations envisaged under the statute.