Chariot oil buys Mauritania blocks

Oil and gas exploration company Chariot Oil and Gas has done a deal with the government of Mauritania to explore sites off the coast of the West African country.

The firm said it had entered a contract with the government for a 90% interest and operatorship in offshore Block C19, which is 30 km off the coast and covers an area of 14,125 km.

Water depths at the site range from 5m to 2,100m, it added.

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Chariot said the area offered similar opportunities to its activities off the Namibian coast.

"It is in an area where petroleum systems are proven but exploration is very immature," it said.

"Also, as in Namibia, Mauritania offers a favourable working environment, fair fiscal terms and a developed, stable resource sector."

The contract consists of an initial three year period, during which Chariot has agreed to reprocess the existing 2D seismic datasets and then to carry out a 1,600 km 3D seismic survey.

Following the results of this work, Chariot then has the option to move forward to exploration drilling.

Chariot will be partnered with Socit Mauritaniennede Hydrocarbures, the national oil company of Mauritania, which will participate with a 10% carried interest.

In the event of a commercial discovery, the state will have the option to increase its interest to 15%.