Oil and gas giant Shell, through its subsidiaries, has won two offshore production sharing contracts from the Mauritanian Government.
Shell Exploration and Production Mauritania (C-10) and Shell Exploration and Production Mauritania (C-19) will be responsible for handling the exploration and potential production of hydrocarbons in the offshore blocks C-10 and C-19.
Located offshore Mauritania in water depths ranging from 20m to 2,000m, both blocks cover a total area of approximately 23,675km2. The C-10 block combines three previous blocks C-10, C-28, and C-29.
Under the two contracts, Shell will own 90% share of the exploration project while the remaining stake will be owned by Mauritania’s national oil company Société Mauritanienne des Hydrocarbures et de Patrimoine Minier.
In addition, the company is planning to set up a new office in Nouakchott after receiving government approvals for the two contracts.
The office will serve as a base for exploration activities such as reprocessing and analysis of existing seismic data and the acquisition of new data.
Shell Upstream director Andy Brown said: “This move represents Shell’s entry into the West African Atlantic Margin exploration basin, which has significant potential.
“We look forward to working with the government and people of Mauritania as we bring our expertise and technical capability to help develop the country’s emerging energy sector.”
Shell has also signed a memorandum of understanding (MoU) with the government to jointly evaluate further offshore production sharing opportunities, as well as find new ways to cater to domestic energy needs of the country.
Shell Exploration and Production Mauritania has entered into an agreement to offer 10% to 20% equity in the C-19 block to Chariot Oil & Gas Investments (Mauritania) in the future.
The deal is subject to the customary regulatory approval by the Mauritanian Ministry of Petroleum, Energy and Mines.