Erin Energy's JV partner FAR signs farm-out agreement with Petronas
Erin Energy Corporation's joint venture partner, FAR Limited said that a subsidiary of Petroliam Nasional Berhad, or PETRONAS, has signed a Farm-out Agreement with FAR. The FOA, expected to be completed March 31, 2018, assigns a 40% interest in the A2 and A5 offshore blocks in The Gambia to PETRONAS with FAR retaining operatorship and a 40% interest in each block. Erin Energy has a 20% interest in blocks A2 and A5 following its farm-out to FAR in 2017. As part of the FOA, PETRONAS will fund 80% of the joint venture's Samo-1 well up to a $45M cap. The well is expected to be drilled in late-2018 and will be the first exploration well offshore The Gambia since 1979. FAR has previously announced that it estimates the Samo Prospect to contain prospective resources of 825 million barrels oil.