Project Profile
Value: Undisclosed
Location: Southeast of Niger, in the West African Rift subsystem
Estimated Production: 80,000 bpd
Start-up Year: 2014
All four blocks lie in the southeast of Niger, in the West African Rift subsystem which includes parts of the Termit and N’Dgel Edgi rift basins. The blocks lie adjacent to China National Petroleum Corporation’s (CNPC) Agadem and Tenere blocks, with the former containing a producing oilfield where CNPC hopes to boost output to 80,000 bpd by the end of 2014.
International held a 100% operated interest in the four licences, known as Manga-1, Manga-2, Aborak and Tenere Ouest, throughout the life of the exclusive exploration authorisation (EEA). In June 2016, the operator relinquished all four exploration permits because of continued instability along the Niger-Nigerian border and Niger\'s declaration of a state of emergency in areas containing International\'s exploration blocks. A force majeure over the area had been in place since February 2015 which, coupled with low international oil prices, prompted International to shelve its exploration plans for Niger.
Under the initial four-year period International will be required to gather, process and interpret 700 line kilometres of 2D seismic and drill one exploration well to a depth of 2,500 metres. During the second phase of the EEA it will need to shoot a further 500 line kilometres of 2D seismic, drill two exploration wells and, in the case of a discovery, one appraisal well. During the final two-year renewal period the company’s minimum work programme will again require it to gather another 500 line kilometres of 2D data, drill two exploration wells and one appraisal well if a discovery is made with the exploration wells. In the case of a commercial discovery, International will need to apply for an exclusive production authorisation (EPA) with an initial duration of no more than 25 years and renewal for a maximum of 10 years.
Under the deal the Niger government had the right to acquire a 20% interest in the EPA and International will have to pay a 12.5% royalty on oil produced from the blocks and a 2.5% royalty on natural gas
In 2013, International Petroleum gathered historic geological and geophysical data on the blocks and conducted in-house G&G studies of the area. It undertook a reconnaissance survey of the area in June 2014.
Operators:
International Petroleum: Operator with 100% interest
Niger Government: Right to acquire 20% interest