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(Alliance News) - Wildcat Petroleum PLC on Monday said it was unable to sign a production sharing agreement with the Sudanese government due to the "current political situation" in north-east Africa.
The investor in upstream sector of petroleum industry said it therefore intends to sign a service agreement with the Sudanese government within the next few weeks with a view to increasing oil production on the Bamboo oil field.
Wildcat Petroleum said the Bamboo oil field, which contains 506 million barrels, is to be renamed the Wildcat oil field on signing the service agreement.
Currently production at the field is around 4,000 barrels of oil per day, according to Wildcat Petroleum, down from a peak of 20,000 barrels.
Wildcat Petroleum said that, through the implementation of enhanced oil recovery techniques, alongside repairing and upgrading surface facilities, it will be targeting an initial increase in production within a year, and towards an "ultimate" target of around 10,000 [barrels of oil per day] within three to five years.
After evaluating the field data, Wildcat Petroleum will then submit a short-term, six-to-12 month work program to the Sudanese government for approval.
Wildcat Petroleum noted that the evaluation process should take one to two months and the approval around one month.
It said it still intends to negotiate a PSA for around 20 to 25 years for the Bamboo oil field, "when the political situation", noting that the field already contains all the surface facilities required to process increased oil production, including access to an export pipeline to the Red Sea.
"This arrangement demonstrates the good relation that Wildcat has with the [Sudanese government] and is a practicable solution given the current political situation in Sudan," said Wildcat Petroleum Chair Mandhir Singh.
"The company is aiming for the first quarter of 2024 for the achievement of the first net oil to Wildcat from increased production at the Bamboo oil field."
On Sunday evening, AFP reported that flames gripped the Sudanese capital Khartoum and paramilitary forces attacked the army headquarters for the second day in a row, according to witnesses, as fighting raged into its six month.
Shares in Wildcat Petroleum were down 11% to 0.40 pence each in London on Monday afternoon.
Two weeks earlier, Wildcat Petroleum shares jumped 36% by late-morning trading after it said it has opened a new office in Juba, the capital of South Sudan.
By Greg Rosenvinge, Alliance News reporter
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