Mauritania: PSC B Chinguetti Field
|Location||Nouakchott sub-basin (Northern MSGBC Basin)|
|Area||Chinguetti Field 29 Km²|
|Sterling participation in Chinguetti Funding Agreement with SMH||Economic interest for Approximately 9% of Chinguetti project|
|Sterling's Royalty over Premier's production||
PSC B: Sliding scale royalty over 5.28% of Premier's share of the production of the Chinguetti Field
Sterling has economic interests in the Chinguetti field through a funding agreement with Societe
Mauritanienne Des Hydrocarbures et du Patrimoine Minier (SMHPM), Mauritania's national oil company, and a royalty agreement with
Gross production during 2015 averaged 5, 083 bopd (2014: 5,512 bopd) and the average production net to the Group, from the Group’s economic interests during 2015, was 310 bopd (2014: 432 bopd). No in-fill drilling or work-over activity took place on the Chinguetti field during 2015.
The Company estimates that at the end of 2015, the net entitlement to 2P reserves is 173k barrels (2014: 292k barrels).
The Chinguetti joint venture is investigating how best to manage the Chinguetti field in the current low oil price environment. Discussions are being held with the Government of Mauritania, SMHPM and Joint Venture partners to proactively manage end of field life challenges and agree on a plan for a safe, cost effective and technically robust, decommissioning and abandonment phase.