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    African Petroleum Awaits Gambian Response

Summary

APC says it has engaged with Gambia, asserting the company's rights to two offshore licences , expects a response next month, and won't rule out arbitration.

by: Mark Smedley

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Natural Gas & LNG News, Africa, Corporate, Litigation, Exploration & Production, News By Country, Senegal

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African Petroleum Awaits Gambian Response

Oslo-listed explorer African Petroleum Corp (APC) provided an update July 20 on The Gambia, where the government is disputing its title to acreage, and Senegal.

Offshore acreage has become hot property, after gas finds by Kosmos with BP, multiple oil discoveries by Cairn, and farm-ins by Total and Cnooc.

APC said that, further to its June 7 announcement regarding an extension to the previously-announced exclusivity agreement covering the offshore SOSP licence in Senegal and A1 and A4 licences in The Gambia, that agreement has now expired, by unanimous consent of the parties, in order to enable APC to engage with other interested parties for the SOSP licence in Senegal and to provide flexibility in government discussions regarding the A1 and A4 licences in The Gambia.

It added that ongoing discussions with Gambian officials to agree a forward plan for A1 and A4 licences, included a meeting with President Adama Barrow on July 13 2017. But APC's board said it maintains its legal position on the A1 and A4 licences in The Gambia, and reiterated its willingness to use dispute resolution mechanism provisions, if the outcome is unfavourable for APC.

It expects a formal response in early August 2017 from the Gambian government to provide "clarity on the situation", adding that it is confident that the Senegalese authorities will approve APC's proposal to extend the SOSP licence, subject to farming out to a suitable partner.

APC CEO Jens Pace said: "I think the fact that we were granted an audience with the president highlights that the significant investment made by the company in these licences is recognised by the Gambian government and we hope that sense will prevail in finding a way forward."

The APC statement July 20 provided no update on another block offshore Senegal awarded to Total in early May by the government there: APC says it already has a 90% operated interest in that 10,357 km² Rufisque Offshore Profond licence. APC is 21.4%-owned by Romanian-Australian Frank Timis.

 

Mark Smedley

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