Guinea Bissau: Five foreign companies authorised to prospect for oil

9 May 2008

Bissau, Guinea Bissau, 9 May – Guinea Bissau has authorised five companies to start offshore oil prospecting, the results of which will be known within five years, the director-general of Petroguin Guinean state oil company said in Bissau Thursday.

Leonardo Cardoso said that the President of the Republic, João Bernardo “Nino” Vieira, signed off the decrees authorising eight licenses, granted to companies Larsen Oil & Gas Svenska, SER Petroleum, Super NOva and Sociedade de Hidrocarbonetos de Angola (SHA).

Larsen Oil & Gas, Ser Petroleum and Svenska received two licenses each and Super Nova and SHA received one license each.

According to Cardoso, prospecting work “is moving on apace” since the government decided to sign the decree for concession of licenses.

One of Petroguin’s concerns was related to stoppage of prospecting work, at the beginning of the year, by Premier Oil and Occidental, due to poor results.

The director-general of Petroguin said that this was no longer an issue as the licenses of those two companies were recently acquired by Svenska.

Svenska, a Swedish-owned company, is at the most advanced stage of prospecting and has acquired geological and seismic data from Premier Oil and Occidental, Cardoso said.

Cardoso noted that Guinea Bissau decided to grant the prospecting licenses for free, on the condition that if commercially-viable oil is struck profits will be shared between the prospecting company and the Guinean state. (macauhub)