Portuguese group Galp Energia will spend over US$100 million in oil prospecting in Block 6 of the Economic Exclusive Zone of São Tomé and Príncipe, in partnership with Cosmos Energy, said Monday in São Tomé the chairman of the group.
Carlos Gomes da Silva, who made the statement at a ceremony to formalise the agreement with the National Petroleum Agency of São Tomé and Príncipe, said the investment in the exploration block would be at least US$100 million and this phase should be completed within eight to 10 years.
The group’s chairman said work “officially began today (Monday)” and added that this phase would begin with the geological assessment of the area by conducting seismic studies, followed by the analysis of investment risks before launching the development and production phase.
Galp Energia Monday deposited US$2 million with the State of São Tomé and Príncipe as a bonus for signing the production sharing contract and Gomes da Silva announced the disbursement of US$1.2 million over the next four years for social spending.
In this block the Portuguese group holds a 45 percent stake and is also operator, Kosmos Energy, headquartered in Dallas, Texas, also has 45 percent and the remaining 10 percent is in the hands of the National Petroleum Agency (ANP), representing the State.
The contract signed by the National Petroleum and Galp Energia is for a period of 28 years and states that the first eight years will be devoted to prospecting and the remaining 20 to development and production.
Block 6, located in the sea off São Tomé and Príncipe has an average depth of 2,500 metres and covers an area of 5,024 square kilometres. (macauhub/PT/ST)