Australian oil and gas company, Woodside Petroleum Limited, has finalized an agreement with Tanzania Beach Energy to farm-in to the prospective basin in western Tanzania.
According to reports, Woodside will purchase a 70% participating interest in the Lake Tanganyika South Block from Beach Energy along with its Production Sharing Agreement.
In a recently released statement, Peter Coleman, Woodside CEO, indicated that the farm-in would help Woodside expand its footprint in the region.
“Securing this highly prospective acreage represents another step forward in building Woodside’s global exploration portfolio,” he said.
While the agreement remains subject to government and regulatory approvals, the proposed work program would include seismic studies and, while Beach Energy will remain operator during the next stage of seismic operations, Woodside will have the future option for drilling and operatorship.
Beach Energy Managing Director, Reg Nelson, indicated in a released statement that the agreement is in line with the company’s strategy of getting in early to prospective areas, and proving the potential of those areas.
“Bringing a world class operator into this area such as Woodside will not only ensure Beach is carried to the next phase of exploration, but will also define initial drilling prospects as a result of the further seismic work that will be undertaken,” said Mr. Nelson.
Woodside Petroleum is Australia’s largest independent oil and gas company with a reported net profit after tax of USD 1,749 million in 2013.