Shell has signed an agreement to explore Mauritania's Block C2, the oil ministry reports.
Mauritania's Minister of Petroleum, Mines and Energy Abdessalam Ould Mohamed Saleh has signed a production sharing contract (PSC) with Shell's vice-president for deep offshore exploration, Bill Langin, in Nouakchott.
Shell has committed to carrying out seismic and exploration studies in the first phase. Drilling would take place at a later stage. Mauritania will hold a 25% stake in the block, the ministry said.
Ould Mohamed Saleh welcomed Shell's decision to move into the new block, saying it demonstrated Mauritania's promotion in the hydrocarbon sector.
Langin a déclaré que la société travaillerait avec la Mauritanie pour un « avenir fructueux ».
While work on C2 has only just begun, the Ministry has indicated that Shell plans to drill another licence in the coastal zone before the end of 2023.
Shell entered Mauritania in 2018, when it committed to explore blocks C10 and C19 with a 90% stake. At the time, the company said this marked an entry into the West African Atlantic margin.
The company has acquired 6,205 km2 of 3D seismic in Mauritania, with work starting in 2019. The seismic could illuminate both C2 and C10. Shell's new block is just south of C10. The company no longer holds C19.
Shell's local projects were discussed at the Mauritanian Council of Ministers last week. The council agreed to reorganise the exploration phases on C10 to help Shell explore other blocks in the basin.
Autorisant le Ministère à signer le PSC avec Shell sur C2, le cabinet a déclaré que l’attribution du bloc adjacent « encouragerait la prospectivité et l’exploitation conjointe potentielle des deux blocs ». Il a été question en 2022 de faire venir un partenaire, mais rien ne semble s’être concrétisé.
Tullow Oil was previously working on licence C2. It carried out seismic shooting in the area in 2012 but abandoned the area soon after.
Capricorn Energy is facing a drill-or-drop decision on its C7 block in Mauritania in April. The company has mentioned the Dauphin prospect on the licence holding potentially 1 billion barrels of liquids. However, given Capricorn's recent change in management, following a failed merger process, it is unclear whether this will continue.