Project Profile
Value: Undisclosed
Location: The Ambilobe deep water basin, offshore north-west Madagascar
Area: 17,650 km²
Start-up Year: -
The Ambilobe block is located in the Ambilobe deep water basin, offshore north-west Madagascar. The block covers an area of 17,650 km² and is 100% owned and operated by Sterling Energy Plc. Exploration activity in this block continues to be delayed due to the political situation in the country following a change of Government in March 2009. The Government of Madagascar has not been recognised by the African Union or by the United Nations but in September 2011, the political parties in Madagascar agreed a process, prepared by the Southern African Development Community, which involved establishment of a Transitional Government, and with the objective of holding democratic elections, which are expected to take place in 2013.
During 2012, discussions continued with OMNIS, the state regulator, and formal agreement was reached to prolong the current exploration period of the Ambilobe production sharing contract with the same remaining duration and obligations in the current exploration period as existed in March 2009; in effect, the exploration period will have been suspended from March 2009 to when it resumes. This agreement now awaits formal ratification by the Government.
The PSC for Ambilobe is in the second phase of the exploration period. All work commitments have been fulfilled by completing geological and geophysical studies and acquiring approximately 1,000km of 2D seismic. A number of large Cretaceous and Tertiary leads have been identified, located in both shallow and deep waters, which will require additional seismic data to develop into potential drillable prospects. The company has started a farm-out process to introduce a partner to carry the costs of the next stage of exploration which is likely to include the acquisition of additional seismic data to define the leads that have been identified.
At the end of April 2016, AIM-listed Sterling Energy issued a notice of withdrawal from the Ambilobe block, offshore Madagascar to its joint venture partner Pura Vida Mauritius. Following the withdrawal, Sterling will cease to be the operator of the Ambilobe block. The withdrawal is anticipated to be completed by the end of July 2016. The Company does not expect to incur any material costs associated with the withdrawal.
Operators:
Pura Vida Energy NL: Operator with 100% interest
Contractors:
CGG Services: 3D seismic survey of 1,250 km² over a high-graded portion of the Ambilobe Block. The acquisition is expected within 45-50 days.