Exxon's Liberia Partner Says Extension Runs to 2017

Canadian Overseas Petroleum (COPL), junior partner in ExxonMobil’s Block LB-13 offshore Liberia, says they can continue exploring for 18 months.

“On February 23, 2016, ExxonMobil informed the company that the length of the extension period granted by the National Oil Company of Liberia has been set at a total of 619 days and that the second exploration period timeframe has been extended until September 25, 2017,” said COPL in its annual results on March 29. The extension was granted because of the Ebola crisis in Liberia during 2014.

Exxon said in November it planned to drill this first exploration well in late 2016 or early 2017; it’s too soon to tell if any finds will be oil or gas. Both have been found off Cote d’Ivoire and Ghana to the east. Earlier this month Exxon cited Cote d'Ivoire's exploration 'risk but higher potential'.

Toronto and London-listed COPL added that the well, Mesurado-1, is “planned to spud no earlier than 4Q2016” and that “exact timing of the well will be dependent on rig availability and when ExxonMobil can confirm third party contractors’ capability to operate in Liberia.”

ExxonMobil is operator with 83% in LB-13, with COPL 17%. The latter’s share of all joint interest costs and the gross drilling costs up to $120mn are carried by the US supermajor.

COPL and Nigeria-based Shoreline Group’s 50-50 joint venture has exploration blocks 1708, 1709 and 1808 offshore Namibia and is scoping out opportunities in Nigeria, Equatorial Guinea and Mozambique. COPL lost $6.7mn in 2015, similar to its $6.6mn loss in 2014.

Mark Smedley