FAR Ltd has taken full ownership of Blocks A2 and A5 in Gambian waters after its fully-owned subsidiary FAR Gambia Ltd acquired an additional 50% stake in the two blocks from PC Gambia Ltd, a subsidiary of Petroliam Nasional Berhad (PETRONAS).

The financial terms of the deal were not disclosed.

According to FAR Ltd, the next two-year license term for the A2 and A5 blocks is slated to begin on 1 October 2022.

The Australian oil and gas company said that it has also negotiated with the Gambian government as part of the acquisition for removing the obligation to drill an exploration well during the next license term.

FAR Ltd stated that omitting the commitment to drill an exploration well will lead to a considerable cut down in expenditure and enables a detailed geoscience review to be taken up to include the results of the recently drilled Samo-1 and Bambo-1 wells to ensure future exploration wells are optimally located.

The Australian oil and gas firm expects to bring in new partners for Blocks A2 and A5 and could even transfer operatorship.

Patrick O’Connor — FAR Ltd Chairman said: “FAR’s acquisition of the remaining 50% of The Gambia assets and the positive discussions with the Government of The Gambia on the terms for the First Extension Exploration Period will provide FAR options to utilize its valuable exploration data to maximize value from the asset.

“These developments have minimal impact on FAR’s forward budget while significantly improving the chance of securing new investment. FAR remains committed to generating real value for our shareholders, and we see this transaction as a part of that overarching strategy.”

  FAR Gambia Ltd, FAR Ltd, Gambia, Oil and gas industry news, Oil and gas news, Patrick O’Connor, PC Gambia Ltd, Petronas