afrol News, 7 January - The joint venturers in the Chinguetti oil field off the coast of Mauritania in West Africa have declared the discovery commercial and will shortly submit a plan for developing the field to the Mauritanian government for approval.

The London-based oil company Premier Oil today in a statement said was "pleased to report" that the Mauritanian offshore oil field now had been declared commercial.

- The joint venture's decision on commerciality is in line with the project schedule, Premier Oil stated, "and is a key milestone towards the venture making a final investment decision and awarding major contracts by mid-2004."

First oil production from the field is planned for late 2005 - early 2006, according to the joint venturers. This will be the first regular oil production in Mauritania, marking the poor Saharan nation's - of 2.5 million inhabitants - entry into the oil-producing club of nations.

On 14 November 2003, explorers on the Tiof discovery announced what they called "a significant new oil and gas discovery." New drilling had concluded with larger deposits than previously assumed, but it was only yesterday that it was finally established that the discovery was commercial.

As a result of this, Premier Oil is increasing its ownership in the Chinguetti and Tiof discoveries. Through its agreement with Fusion Oil & Gas, announced on 28 May 2003, Premier said it was to acquire Fusion Mauritania Ltd, which owns an interest in two separate Mauritania Production Sharing Contracts, the British oil company added.

- Completion of this agreement will take place separately for each Production Sharing Contract and will occur on Mauritanian government approval of a field development plan for a field in each Production Sharing Contract, Premier stated.

After completion of this transaction and the transaction with Fusion, Premier's share in Production Sharing Contract B, which contains the Chinguetti and Tiof discoveries, will increase to 9.23%. Premier's share in Production Sharing Contract A, which contains the Banda discovery, will increase to 4.62%.

By staff writer

© afrol News

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