Chevron (CVX.N) is looking to broaden its presence in West Africa, a region the U.S. oil major considers strategic, a senior executive said on Monday following an agreement to explore two offshore blocks in Guinea-Bissau.
The blocks are located in the Mauritania, Senegal, Gambia, Bissau, and Conakry (MSGBC) basin, a geological area in West Africa that has recently attracted significant attention from the oil and gas sector after major discoveries, including GTA and Sangomar.
“So West Africa is strategic to Chevron and we continue to be keen to acquire additional acreage in West Africa,” Liz Schwarze, Chevron’s vice president for exploration, told Reuters.
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“Sometimes you find gas, but the entry premise is really to explore for oil here,” Schwarze added, following Chevron’s announcement of its new partnership with Guinea-Bissau, which aligns with the company’s global strategy of acquiring “high-quality acreage.”
Chevron’s local unit will operate Blocks 5B and 6B, holding a 90% working interest in both, while Guinea-Bissau’s national oil company, Petroguin, retains the remaining share.
Schwarze noted that Chevron will analyze 2D and 3D seismic data covering the two blocks, which are situated in deep to ultra-deep water.
“We do see a number of plays and great geology in the area,” she said, adding that it is too early to predict when the first exploration wells might be drilled.
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Image Credit: Reuters
