Located in Production Sharing Contract Area B, about 90km west of the Mauritanian capital Nouakchott, Chinguetti was discovered in 2001 has proven and probable reserves estimated at around 120 million barrels of oil.

Australian companies dominate the Joint Venture with Woodside holding 53.846% of the project, Hardman Resources holding 21.6%, BG Group 11.63%, Premier 9.231% (UK) and Roc Oil 3.693%.

Woodside’s Africa Business Unit director, Ian Jackson, said the joint venture’s decision to proceed would allow work to begin immediately under key contracts. Based on the award of contracts and anticipated timing of vessel availability, first oil is expected to be produced by March 2006.

“The Chinguetti project represents a key step in Woodside’s international growth strategy and positions the company to secure significant value from its Mauritanian business,” Jackson said.

“It will be the first production operated by Woodside outside of Australia and will be a major contributor to our production and revenue stream.

“The approval of the Chinguetti project is an important first step for Woodside in establishing a foundation for future business in Mauritania.”

Hardman’s managing director, Ted Ellyard, echoed Jackson’s comments, saying the discovery signifies a new stage of development for Hardman as a company: “The Chinguetti discovery in May 2001 was widely perceived as a potential company-maker for Hardman. Since then a great deal of work has been carried out by Woodside as Operator and the other partners to establish the commerciality of the project and design the optimal production plan.”

“This plan will now be implemented and Hardman can look forward to reaping the benefits from international oil production. For Hardman as for the other partners, the Chinguetti field development positions the company to secure very significant value from its Mauritanian business.

The Chinguetti field development will include six production wells and four water injection wells for reservoir pressure support with flowlines to a permanently moored floating production, storage and offloading vessel moored over the field in about 800 metres of water. Surplus gas not required for fuel will be returned to a nearby reservoir via a gas injection well.

The floating production facility will be a converted trading tanker, owned and operated under a service agreement with Bergesen d.y. Offshore AS of Norway, with a storage capacity of 1.6 million barrels. Oil production is expected to begin at about 75,000 barrels a day.

Subsea hardware will be supplied by FMC and drilling will be conducted by Smedvig and Stena Drilling. The drilling program is substantial and could contain around 20 wells which include Chinguetti development and additional exploration and appraisal targets.

During project development, Woodside will directly manage logistics for the main contractors from its operations base in Nouakchott.