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Equator is currently focusing its efforts in West Africa, which has become a world leader in offshore deepwater exploration and production in recent years. Despite the exploration successes to date, West Africa, in general, and the deepwater sector, in particular, is still a frontier province. The Gulf of Guinea maintains an enviable oil reserve renewal rate and evidence suggests that major discoveries will continue to be made in the region’s deep waters over the next few years.
Equator has been active in the region since 2001 when it acquired the rights to a 100% working interest in two blocks of its choice in the territorial waters of São Tomé and Príncipe, known as the Exclusive Economic Zone (EEZ). The company also has the option to participate with the Government, up to a maximum of 15%, in any Government participating interest options in the EEZ.
In the Nigeria - São Tomé and Príncipe Joint Development Zone (JDZ), the company has a 9% interest in Block 2, which is operated by Sinopec of China and is adjacent to OML 130 which hosts the large Akpo field.
Equator has also agreed to undertake the development of Oil Mining Lease (OML) 122, located offshore Nigeria, with Peak Petroleum Industries Nigeria Limited. Drilling of the first horizontal appraisal/development well, D2, has been completed on the Bilabri field on OML 122. This is the first production well to be drilled as part of the development plan for the Bilabri field with first production anticipated in the second half of 2007. Work on the next appraisal well, D3, will begin in the near-term.
In Nigeria, Equator also has 30% equity interests in OPL 323 and OPL 321, two of the most highly sought-after deep water blocks in the 2005 Nigerian licensing round. The Korean National Oil Corporation is the operator of both blocks with a 60% equity interest.
Equator also continues to pursue other exploration opportunities in the region. |
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