(Ecofin Agency) - Savannah Petroleum Ltd, oil and gas company listed in London, will soon sign a new production sharing agreement (PSA) on the oil of the Agadem Rift basin, a region located in the South-East of Niger. The new agreement covers an area of 5249 km2 and extends to the permit zone R3/R4, located in the vicinity of the previous production sharing agreement R1/R2 of 8406 km2 in the Agadem region.

Savannah Petroleum announced, on 10^th July, that the talks with the Nigerien government were progressing well and that it hopes to sign this agreement in August with the ministry of Energy and Oil of Niger. The first draft of the document will be submitted, in the very near future, for review by the Cabinet, stressing that the actual terms of the production sharing agreement grant a carried interest of 15% for the state of Niger.

A few days ago, the firm CGG Robertson ran an independent assessment of the potential of the R1/R2 permit zone. It reported 1.191 billion barrels of risk-adjusted raw prospective oil resources, against 573 million barrels announced in an expert’s report published in July 2014. 

The activities of Savannah Petroleum are focused on Niger where, at the end of the agreement on zone R3/R4 permit, the company will hold around 50% of the area of the prolific Agadem rift basin.