Oil and gas firm New Age has received formal approval to apply for a new exploitation agreement for its Etinde license offshore Cameroon.
This would replace the existing Etinde Exploitation Agreement which came into force by Presidential decree in January 2015, Bowleven, a partner in the offshore license said Monday.
The Etinde Permit (former Block 7) lies in shallow water in the Rio del Rey Basin, offshore Cameroon, and comprises four proven reservoir intervals within the Pliocene and Miocene formations.
The new exploitation agreement for the Etinde offshore block would be for the production of hydrocarbons including the delivery of gas to thermal power plants or any other projects confirmed by the State.
Eli Chahin, CEO of Bowleven, said: "We are pleased to announce that following a constructive dialogue between the Etinde JV partners and SNH, authorization to apply for a replacement EEA has been granted. This is very positive news for the Etinde development, as it essentially eliminates the possibility of the Government of Cameroon removing the Etinde license from the JV partners, following the end of the initial six-year development implementation period in January 2021.
He said that the JV partners - so, New Age, Lukoil, and Bowleven - continued to make good progress towards achieving a Final Investment Decision on the license in 2021.
Information on New Age's website shows that a Final Investment Decision is expected by early 2021, with the first production envisaged in 2023.