6. Shallow Water Cape Three Points Block (1500sqkm)
Contract Parties
Sahara Energy (Operator), GNPC, Sapholda E&P
Effective Date/Initial Exploration Period
Effective Date: July 17, 2014
Initial Exploration Period(3 years): July 17, 2014 – July 16, 2017
Minimum Exploration Program (Initial Phase)
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Conduct geological and geophysical studies
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Drill one (1) Exploration Well
Minimum Expenditure
$32,000,000
Observations as of 2017
The Company has defaulted in its work and financial obligations. The initial period ended in July 2017. It is not clear whether they will be given extension after failing to deliver on the block.
The contractor did not fulfill the minimum work obligation in the first phase, which expired in 2017. The Ministry of Energy has not provided update on the status of the agreement. However, the map of the western basin still shows that the contract area is owned by Sahara.
The Contractor did not undertake any activity in 2019.
The contractors on the block are required to conduct geological and geophysical studies drill one (1) exploration well. The contractors have failed to deliver on their minimum work and financial obligations since the expiration of their initial exploration period. While there is no evidence of the contractors being granted an extension after 2017, the petroleum register still lists them as the holders of the Shallow Water Cape Three Points.
The 2021 PIAC Semi-Annual Report reveals that the Petroleum Commission has commenced processes for the termination of this agreement on the grounds of non-performance.