Woodside Petroleum has finalised an agreement with Noble Energy and Glencore International to farm in to the Tilapia Production Sharing Contract off the coast of Cameroon.
Under the agreement, Woodside will pick up a 30 per cent non-operating interest, while Noble and Glencore will retain a 46.7 per cent and 23.3 per cent interest respectively.
Noble will continue to operate the PSC.
The 3,875 square kilometre block is located in the Douala Basin, offshore Cameroon in a water depth of 1,100 metres.
The joint venture plans to drill the Cheetah exploration well next year.
“As part of our global expansion portfolio build, our entry into the Tilapia PSC gives us exposure to an emerging play in a proven basin with an exciting near-term drilling opportunity,” Woodside chief executive officer Peter Coleman said.
The farm-in agreement follows Woodside’s acquisition of a 40 per cent participating interest in an exploration, exploitation and production sharing contract in the Gabon Coastal Basin in Africa, in August.
Noble holds the remaining 60 per cent interest.
“Following our recent announcement on Gabon, this farm-in opportunity consolidates our regional position and extends our relationship with Noble as a valued and experienced operator,” Mr Coleman said.
Woodside’s share price rose by 0.6 per cent to $38.95 per share at 9:40am.