New Zealand Oil & Gas (NZOG) has entered into an agreement to acquire a 40% stake from Storm Ventures in the Cosmos concession located offshore of Tunisia.
The concession, which contains the Cosmos South oil discovery, is located about 45km offshore of northeast Tunisia in the Gulf of Hammamet.
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Storm, a subsidiary of Chinook Energy, will reduce its stake to 40% from 80% on completion of the farm-in agreement.
Under the terms of the agreement, NZOG will pay $3m as a contribution to past costs to give it the right to participate and earn an interest from the concession’s development.
In addition, NZOG will pay an additional $19m of Storm’s share of development costs following final investment decision (FID).
Currently, the development plan for the concession is based on three wells, a small platform and a floating production and storage offtake vessel, with initial production rates of between 15,000 and 20,000 barrels of oil a day.
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By GlobalDataThe FID is scheduled to be decided in mid-2012, with the first oil production from the Cosmos concession anticipated in mid-2014.
The water depth at the Cosmos South location is about 120m and the discovery is at a depth of 1,500m.
The Cosmos South block on the concession had a proved and probable oil reserve of 6.3 million barrels, with additional potential from adjacent lobes.
A formal signing of the agreement by NZOG and Storm has been completed in Tunisia.
