Soco agrees Congo farm-out

Soco said it has agreed to farm-out a 20% interest in the Nganzi Block, onshore the Democratic Republic of Congo to Inpex Corporation (Inpex). The group said its subsidiary Soco Exploration & Production will remain as the operator of the block with a 65% working interest. The remaining 15% is held by the national oil company, La Congolaise des Hydrocarbures.Inpex will fund 40% of the cost, with half of the funding obligation subject to certain caps on cost overruns, associated with a three well exploration drilling programme. Following the initial three well programme, Inpex will fund its participating interest share of costs associated with the Block. In addition, it will fund its participating interest share of all the historical costs certified as cost recoverable incurred by SOCO on the Nganzi Block. "We are pleased to have a partner who, with its co-venturers, has successfully produced and exported oil for many years in the Democratic Republic of Congo," said Ed Story, the president and chief executive of SOCO.