HDR hardman resources limited

another story...london financial times

  1. 3 Posts.
    This story from the London Financial Times. Nice to see that Ted is now known as Mr Hardman overthere !


    Oil benefits may flow for Mauritania
    By Toby Shelley in London
    Published: October 29 2003 4:00 | Last Updated: October 29 2003 4:00

    High oil prices and US moves to diversify sources of crude are to benefit another of Africa's poorest countries with a first oil field development planned for Mauritania in 2005 or 2006.

    Mauritania, with a population of some 2.5m, has nominal government revenues of only about $200m (€170m, £118m) and gross domestic product of less than $1bn. Export income is dominated by iron ore and fisheries.

    But like Equatorial Guinea and São Tomé and Principe, Mauritania is soon to gain from a boom in West African oil exploration. By 2006 the republic will be producing oil for shipment to Europe and the US.

    Even at conservative oil price estimates, the government is likely to earn $100m a year in 2008.

    With the apparently successful testing this week of an appraisal well in the Chinguetti field in deep water offshore Mauritania, the scene is set for a $400m development using a floating production, storage and offloading unit (FPSO). This avoids the need for expensive pipelines to shore.

    The Chinguetti consortium is led by Woodside of Australia. A formal declaration of the commercial viability of the field is expected by the end of the year with a final investment decision in mid-2004.

    Chinguetti is forecast to produce 50,000-75,000 barrels a day and have a life of up to 12 years.

    After a cost recovery period, the Mauritanian government would earn $85m a year from oil sales and $15m a year in taxes, assuming crude oil in the low $20s a barrel and steady production. But another find, named Banda, close to Chinguetti, has yet to be evaluated.

    If Banda is the same size as Chinguetti it could be developed in its own right, said Ted Ellyard, managing director of Hardman Resources, the oil company that introduced other consortium members to Mauritania. Otherwise, it could be tied to Ching-uetti.

    Mr Hardman hopes the development implications of the project for Mauritania will lead to the World Bank's International Finance Corporation part-financing its share of the costs.

    The consortium plans to drill on two further prospects before the end of this year.

    Meanwhile another group of oil companies, led by Scottish-based Dana, plans to drill elsewhere in Mauritanian waters on a prospect it believes might contain several hundred million barrels of reserves.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.