CNOOC UK Ltd. has farmed into a production-sharing contract (PSC) and associated joint operating agreement in the AGC Profond Block offshore the joint development zone between Senegal and Guinea-Bissau, according to a news release.

The move came after CNOOC reached an agreement with Impact Oil & Gas AGC Ltd. regarding a 65% participating interest in the PSC, which covers about 6,700 sq km (2,587 sq miles) in water depths ranging from 1,400 m to 3,700 m (4,593 ft to 12,139 ft). Impact said the area is located west of the Dome Flore and Dome Gea oil accumulations, and south of the recent Fan-1 and SNE-1 and SNE-2 oil discoveries made by Cairn and its partners ConocoPhillips and FAR Ltd.

Impact said prospectivity has been identified at various stratigraphic levels. The company purchased legacy 2D and 3D seismic data in November 2014, after being awarded the license a month earlier.

Impact said it had previously entered a farm-out agreement with Woodside Energy (Senegal) Pty Ltd. covering the AGC Profond license. However, the agreement was terminated on Feb. 9 because certain conditions had not been satisfied or waived, the release said.

The transaction with CNOOC completed March 23. CNOOC UK Ltd. now serves as operator with 65% interest, while Impact holds 20% and Entreprise AGC SA (an entity owned by Senegal and Guinea-Bissau) holds 15%, according to the release.

Offshore