Oil exploitation: Afren PLC will begin its drilling operation in 2012

The company Afren PLC announced from its London headquarters that it has recently received approvals from the Malagasy government to increase its activities in the block 1101, which consists of an “on-shore oil exploitation”.

Under the terms of the reallocations, Afren has increased its overall participation in the block 1101 up to 90% after acquiring the shares of 50%, previously held by the company, Candax Energy. However, the latter still remains Afren’s partner on the site with 10% shares. Government’s approval for the reallocation project was received, along with a revised work plan, with the agreement of the OMNIS and the Ministry of Mines and Hydrocarbons. The approved work plan combines the 2 first phases of exploration in the site, and requires the drilling of one exploration well at a depth of at least 1600 meters. And the drilling operation is expected to start in 2012. Osman Shahenshah, Chief Executive of Afren PLC declared: “We are aware of the enormous potential of Madagascar. And we are very grateful to the OMNIS and the Malagasy authorities for their support and approval of this transaction and the expansion of our project. We look forward to working with our hosts and with Candax in the ongoing exploration of the Block 1101.”

In fact, the block 1101 is located on the eastern flank of the basin of Ambilobe, in northern part of Madagascar. It covers an area of ​​about 14 900 km² onshore and is close to the ExxonMobil exploration site, in Ampasindava. According to history, the formation of the basin of Ambilobe and its corresponding stratigraphic consequences are closely related to Gondwana’s break-up and the subsequent split of its eastern part. Moreover, there is evidence of the existence of large accumulations of heavy oil in the center part of Isalo, including Bemolanga and Tsimiroro, which again attests the potentiality of the region.