Zenith Energy has submitted a comprehensive commercial and technical offer to the Ministry of Hydrocarbons of the Republic of Congo for the attainment of a new 25-year license for the Tilapia oil field, to be named Tilapia II.
The license on the Tilapia asset expired on July 18, 2020. Zenith Energy’s subsidiary in the Republic of Congo, Anglo African Oil & Gas Congo (AAOG Congo), will continue to operate the field on an interim basis while the proposal is reviewed. Both local authorities and Zenith Energy have agreed on this through a plan for the continuation of activities.
“We are very excited about the good progress we have achieved in recent weeks in the Republic of the Congo, specifically in respect of the submission of the Offer for Tilapia II,” said Andrea Cattaneo, Chief Executive Officer of Zenith Energy. “As is to be expected, the unprecedented world crisis presented by COVID-19 has delayed all activities, including the arranging of meetings to conduct the necessary negotiations prior to submitting the Offer. The Tilapia asset has transformational production potential, and the award of a new 25-year license will represent the first important successful milestone in our journey in the Congo. It is our hope and expectation that we shall achieve this goal in due course.”
Zenith Energy expects to receive a preliminary indication regarding the acceptance of the offer within the next 30 days.
“I am also pleased to confirm that negotiations are nearing a conclusion with regards to defining a payment plan for the repayment of the US$5.3 million debt owed by Société Nationale des Pétroles du Congo to AAOG Congo,” Cattaneo added.
The Republic of Congo is the fourth largest sub-Saharan producer of oil, with an output of 323,000 bpd in 2018. Its proven oil reserves amounted to 2.9 billion barrels in 2018, with a reserves-to-production ratio of 15.8%.