African Development Bank Group and French Development Agency sign €2 billion co-financing partnership

On the sideline of the Paris Peace Forum this week, the African Development Bank Group (AdFB) and French Development Agency (AFD) have signed a €2 billion co-financing partnership agreement for Africa.

The agreement covers the 2021-2026 period and targets €2 billion in the first three years only to complement the current partnership between both institutions. The existing partnership already covers such key sectors as infrastructure, water and sanitation, agriculture, and the private sector.

The new agreement supersedes an earlier framework agreement signed in November 2015.

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FAR has spudded the Bambo-1 exploratory well offshore The Gambia – What’s next?

FAR has successfully spudded the Bambo-1 exploratory well on Block A2 offshore The Gambia. The drilling campaign will take about one month and drill the well to a depth of about 3,400 metres. Bambo-1 will drill into a series of vertically staked targets with a combined estimated recoverable prospective resource of over 1 billion barrels with chance of geological success ranging from 7% to 36%. This will be FAR’s second exploratory well on the block after it drilled the Samo-1 well in 2018. Its main targeted horizons had then proved water bearing. While FAR now targets the Bambo, Soloo and Soloo Deep prospects, the Bambo one is believed to be the most prospective of the three of over 500m barrels of estimated recoverable prospective resource. Equally important, the well located is just south of Senegal’s Sangomar oil field where Woodside Energy expects to achieve first oil in 2023. FAR was previously part of the Sangomar joint-venture before it had to exit the license last year. The operator is very familiar with the environment offshore Senegal and The Gambia and expects to prove the southern extension of the Sangomar oilfield. FAR already drilled the Samo-1 well on Block A2 back in 2018 but its main targeted horizons proved water bearing. A new exploration plan was put on the table in 2019 when both blocks benefited from new licenses, still operated by FAR (50%) along with PETRONAS’ subsidiary PC Gambia (50%). Likely Development Scenario In case of a discovery, FAR has indicated that 90m barrels would be the set minimum economic field size. Its success case planning actually relies on a development of 150m barrels of oil via a 48,000 barrels of oil per day (bopd) floating, production, storage and offloading (FPSO) vessel. Three wells would then support production, gas and water injection operations. Map: FAR Ltd Details on the A2 & A5 Blocks Exploration offshore The Gambia are available in the “Projects” section within your Hawilti+ research terminal.

Tullow Oil exercises pre-emption rights in Ghana and consolidates stake in key producing fields

Tullow Oil has announced today that it has exercised its right of pre-emption related to the sale of Occidental Petroleum’s interests in Ghana’s Deep Water Tano (DWT) Block to Kosmos Energy. As per the DWT Joint Operating Agreement (JOA), Tullow has pre-emption rights in respect of the 11.05% participating interest acquired by Kosmos Energy from Anadarko WCTP Company in the block last month. Tullow’s pre-emption rights are now expected to increase its share in the license by 7.7% (to a total of 54.8%). This would in turn increase Tullow’s equity interests in the Jubilee and TEN fields to 38.9% and 54.8%, respectively. Both fields are operated by Tullow Oil’s and are its most strategic assets. The company is currently executing a drilling campaign on both projects to increase output and has planned significant investment in their continued development until 2030. “The additional equity is expected to increase Group daily production by c.10% and generate over $250 million incremental free cash flow at $65/bbl for Tullow between 2022 and 2026, which will help to accelerate debt reduction,” Tullow Oil said in a statement today.