Woodside signs Morocco farm-in agreement

Woodside Petroleum has signed an agreement with London-based Chariot Oil & Gas to farm-in to the Doukkala basin off the coast of Morocco.

Under the agreement, Woodside will acquire an initial 25 per cent participating interest in Rabat Deep offshore permits I-VI, with the option to acquire an additional 25 per cent and operatorship in the permits, pending on government approvals. 

According to Woodside the undrilled permits are 10,782 square kilometre in area with a water depth range from 150 to 3,600 metres.

Woodside chief executive officer Peter Coleman said the farm-in provided an opportunity to secure a large acreage footprint in an emerging petroleum province that was prospective for both oil and gas. 

“Exploration in this basin aligns with our strategy to secure new international growth opportunities in frontier and emerging basins characterised by materiality and quality,” he said. 

“This opportunity has been supported by Woodside’s disciplined approach to studying regional petroleum systems, including the Atlantic margins, and is a good fit with our core capabilities in deepwater exploration and production.”

Woodside said the Rabat Deep permits will complement its acreage position in the nearby Canary Islands, and will be a further demonstration of continued efforts to build a global exploration portfolio.

The company’s share price rose by 0.6 per cent to $41.87 at 9:30am WST.