Project Profile
Value: Undisclosed
Location: Northern half of the Seychelles plateau, Seychelles
Reserves: 2,800 mmboe (Gross un-risked prospective resources)
Area: 14,319 km2
Start-up Year: -
Areas A and B are located in the Seychelles micro-continent in shallow to deep water in the northern half of the Seychelles plateau and cover a combined area of approximately 14,319 km2. The main exploration targets are the Permo-Triassic Karoo interval, which comprises non-marine sands inter-bedded with shales and a Cretaceous marine rift basin underlain by Jurassic platform source rocks. The Karoo formation contains both the source rock and the reservoir. Over 1980 to 1981, three exploration wells were drilled, all of which encountered oil shows and confirmed the presence of a working hydrocarbon system.
The PSC for Areas A and B has an effective date of November 2008. The PSC has an initial exploration period of two years, followed by two additional exploration periods (the first lasting two years and the second lasting three years) before entering an exploitation phase lasting up to 25 years. The Government of Seychelles has no back-in rights into successful exploration wells and contractors are allowed to recover 100% of their costs from 100% of the production. Oil and gas royalty rates are both flat at 5%.; revenues incur an Additional Petroleum Profit Tax that ranges from 30%. to 45%. depending on previous production revenues.
During the first exploration period, the PSC partners are obligated to obtain 2,000 km of 2D seismic and 150 square km of 3D seismic. The partners acquired 3,637 km of 2D seismic data in 2007 and a further 1,271km was acquired in 2009. During the second exploration period, the PSC partners are obligated to acquire 1,500km of 2D seismic and to drill one exploration well. During the third exploration period, the partners of the farm-in are obligated to acquire 1,000km of 2D seismic and to drill two further exploration wells.
In Q1 2013, Afren completed a major 3D seismic programme, the first 3D survey to be conducted in the Seychelles. The programme consisted of two surveys in Afren’s licence areas. The first 3D survey was conducted in the southern portion of the licence over the Bonit prospect and covered 600 km2. The second survey was in the northern section of the licence area and covered an area of 2,775 km2. The new 3D seismic combined with existing 2D data are being processed by the Partners to assess in detail the Tertiary, Cretaceous and Jurassic prospectivity. Gross un-risked prospective resources for the two areas are estimated at 2,800 mmboe. Vanoil holds a 25% working interest in Seychelles Areas A and B with its partner Afren.
Operators:
Afren Plc: Operator with 75% interest
Vanoil: 25% interest