In a statement today, Norwest said the farminees, Bharat Petroleum Corp and Tata Petrodyne have agreed to each fund 40% of the costs of drilling an appraisal well on a gas discovery made in 1984 by Amoco in Block 48/1b&2c.
In return, BPCL and TPL will each earn a 25% stake in the block, earning equity equally from Norwest and Encore, both of which currently hold 50% of the block.
Norwest said subsequent analysis undertaken of the 1984 discovery indicated “significantly larger” gas volumes than the minimum economic field size.
“A number of producing fields in the immediate vicinity provide a range of alternatives for gas production/delivery to onshore gas plants,” the company said.
Norwest chief executive Joe Salomon said he hoped the farm-in marked the beginning of further business ties with the two oil and gas giants. BPCL recently farmed-in to a Timor Sea joint venture that Norwest is part of.
“In addition, Encore has recently become a partner with us in all of our UK licenses and has taken over the operatorship of Block 48/1b&2c from Norwest,” Salomon said.
“Encore has a most impressive and proven management and technical team, and we look forward to further engagement with the company.”
He said Norwest viewed the North Sea as an “excellent place” to do business and also as a potential growth area.
