Portugal-based Galp Energia has signed an agreement with the Government of São Tomé and Príncipe and Kosmos Energy to work as operator for Block 6 of the offshore São Tomé and Príncipe Exclusive Economic Zone (EEZ).
Under the agreement, the Portuguese firm will hold a 45% interest in the hydrocarbon exploration project.
The remaining interest is shared between Kosmos Energy, which holds a 45% stake in the project, and the National Petroleum Agency (ANP), which owns 10% of the asset on behalf of the Government.
The offshore block is located in water depths of up to 2,500m in the São Tomé and Príncipe EEZ and stretches across 5,024km².
The partners will now continue multiple exploration activities in the area, including seismic acquisition, which is expected to last for an initial exploration period of four years.
This deal is expected to expand its footprint into new geography and strengthen its financial position.
Galp Energia is focused on carrying out development projects, especially in Brazil and Mozambique.
The firm’s portfolio comprises diversified exploration and appraisal assets, which enable it to continue sustainable level of production.
Earlier this month, US based independent oil and gas company ERHC Energy has agreed to transfer its rights for block 11 of the São Tomé and Principe Exclusive Economic Zone (EEZ) to Kosmos Energy.