African Petroleum on Monday announced that it has signed a new Production Sharing Contract (PSC) which covers its CI-513 licence area in Ivory Coast with Ophir Energy plc.

Under this new PSC, Ophir Energy is the operator with 45% interest, alongside African Petroleum and Petroci; the National Oil Company of Côte d’Ivoire with 45% and 10% carried interest.

The new PSC also includes the fine-tunings of the fiscal terms and holding costs agreed upon with the Government of Côte d’Ivoire. It mirrors the existing commodity price environment and outlook for the development of the deepwater prospects pointed out, via analysis of the company’s recent 3D seismic thereby resulting to the extension of the former minimum work commitments on the block. The agreement now calls for the drilling of an exploration well within 2 years of the signing of this new PSC.

African Petroleum had in June, 2015 declared that it entered into a binding joint bidding agreement with a London based oil and gas firm with the aim of to providing an outline for incoming party to acquire a 45% operated interest in a PSC covering the company’s CI-513 licence area in Côte d’Ivoire.

However, in agreement with the terms of the joint bidding agreement, Ophir Energy will donate $16.9 million towards African Petroleum’s past investment in 3D seismic as well as transaction expenses. Ophir Energy will also pay an extra 10%, for the drilling of the first exploration well on the block.

The signing of the new PSC was witnessed by African Petroleum, Ophir Energy, Petroci, and two out of three important government Ministries. According to Offshore Energy Today, African Petroleum anticipates the third government Ministry’s signature soon.