Morocco award to Kosmos

 

By Upstream staff

23 June 2006

 

Kosmos Energy has acquired a full exploration licence from Morocco for part of the area covered by the old Boujdour reconnaissance permit off Western Sahara, writes Barry Morgan.

 

It is the first such licence issued by Rabat for the disputed territory, which Morocco calls its Southern Province.

The original reconnaissance permit for the Aaiun basin acreage, in which Kosmos participated alongside Pioneer Natural Resources, was relinquished by Kerr McGee in April after the US explorer said it was re-prioritising its global exploration and production strategy and downgrading some high-risk areas.

 

Dallas-based Kosmos will operate the new licence, now covering only 44,000 square kilometres, carrying state oil company ONYHM for 25%. Water depths run to 3000 metres on Boujdour and Kosmos is understood to be focused on the deep water.

 

Kosmos is seemingly unfazed by an ongoing dispute with Western Sahara (Sahrawi) locals who fought a war of independence against Rabat after the Spanish pull-out in 1975 until a UN-sponsored ceasefire.

 

In a parallel licensing round organised in London earlier this year, the government-in-exile of the Sahrawi Arab Democratic Republic (SADR) awarded onshore and offshore acreage to several companies. The SADR is described by the UN as a non-self-governing territory but insists its own awards will take effect once Sahrawis achieve self-determination.

 

The SADR awarded deepwater blocks Daora and Haouza to Ophir Energy in a 50-50 partnership with UK explorer Premier Oil. The deep-water Guelta block was similarly awarded to newcomer Comet Petroleum.

 

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Forwarded by:

The Norwegian Support Committee for Western Sahara

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wsahara@... o
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