Speaking at the Africa Downunder conference in Perth on Friday, Baraka Petroleum managing director Max de Vietri said rising market prices, increasing demand and supply security had enhanced the opportunity for Mauritania and Mali to emerge as a key alternative energy supply to the United States and Europe.
The company, which has oil and gas assets in both countries, is due to participate in its first oil exploration well, Heron-1, in the next four weeks in Coastal Block 20 in Mauritania. Baraka largely has a free-carried interest in the 200 million barrel-plus target.
“The United States is looking to diversify its oil import base and have 25% of its oil imports sourced from Africa by 2015,” de Vietri said.
“Baraka has strategically sought exposure to this potential as commercialised oil outputs from either Mali or Mauritania can be safely supplied to the US through export infrastructure on the African west coast.
“In addition, our location provides a secure gas supply corridor through Algiers to the north to feed markets in Europe concerned about sovereign risk in Russia and the Middle East.”
De Vietri told delegates that Baraka also planned to leverage its emerging long-term petroleum supply prospects by establishing an alliance of three to four junior companies that were seeking petroleum-based new venture projects in Africa.
“The alliance, to be established in the forthcoming December quarter, will be acquisition positive and expose its members to higher value petroleum projects in the $US20-100 million [$A26-131 million] that they would not otherwise be able to be involved in or acquire individually.
“In real terms, it is a perfect opportunity for mining companies, particularly Australian miners who tend to have some savvy from their Australian resources experience with remote area oil and gas operations – to enter the petroleum business on the back of Baraka’s connections in West Africa.”
Baraka sees room for growth
While Mauritania has received plenty of attention from the global oil and gas industry in recent years thanks to commercial offshore discoveries including Chinguetti and Tiof, Baraka has yet to see this interest reflected in its share price.
Baraka managing director Max de Vietri spoke with PetroleumNews.net at the Africa Downunder conference about the company’s share price, its plans in West Africa and elsewhere, and its attempts to find new alliance partners.
The PNN Audio player is located in the right hand column. Click on the triangular play button to listen to de Vietri's comments immediately, or on Download Audio to download the file to your computer.
