Gambia gives license of disputed A1 offshore block to BP Plc

Amidst dispute for the A1 offshore block in Gambia; the Gambian government recently announced the signing of an oil exploration deal with BP Plc.

BP Plc is a British multinational oil and gas company with operations in 70 countries worldwide. It boasts of producing around 3.6 million oil barrels per day and have total reserves of 18.441 billion barrels. It is also among the world’s seven oil and gas supermajors; as it is the sixth-largest oil and gas company in the world.

Coming from President Adama Barrow’s office, a statement read that, BP plc have signed a deal to explore for oil and gas off Gambia’s coast. This is coming as one of the government’s strategic plan to promote oil and gas development and also to revive its economy. Gambia’s economy had experienced a plunge under the autocratic rule of former President Yahya Jammeh; who ruled for over two decades. The former president, until he fled the country in 2017; rather spent the central bank and other public accounts funds on regal and showy lifestyle.

Details of the Gambia and BP Plc oil exploration deal

However the present government under President Adama Barrow is working towards changing the country’s economic status. This it plans to achieve by paralleling the likes of its neighbours Senegal and Mauritania; who recently discovered huge quantities of oil and gas on its coasts and are now attracting oil majors from all over the globe.

Speaking on the oil exploration deal signed by BP Plc, Fafa Sanyang who is Gambia’s Minister of Petroleum and Energy said; BP Plc will first have to carry out an environmental impact assessment at the A1 offshore block. The company will then work on a two-year programme for drilling and after a stipulated period; financial terms will be then be object for discussion.

In summary, the Gambia and BP Plc oil exploration deal entails searching for oil and gas in Gambia’s deep waters. It also includes the successfully development of the oil after its discovery.

The A1 offshore block

The A1 offshore block is among the two oil blocks that President Adama Barrow dispossessed from African Petroleum Corporation in 2017. Giving the reasons for the dispossession as expiration of the company’s license and its failure to to meet contractual obligations. Note that the two oil blocks (A1 and A4) are believed to contain about 3 billion barrels of oil.

However, that same year (October 2017) to refute the government’s decision; African Petroleum corporation resorted to arbitration at the U.S.-based International Centre for Settlement of Investment Disputes. But there is still no resolution on the case.

About African Petroleum corporation

African Petroleum is an independent oil and gas exploration company having 8 licences in four(4) West Africa countries (Côte d’Ivoire, Senegal, Gambia and Sierra Leone). With an oil resources in excess of 7.4 billion barrels, it is also the largest net acreage holder in the West African Transform Margin. The West African Transform Margin (WATM) is the new centre of oil exploration in Africa.

African Petroleum corporation while reacting to the BP Plc oil exploration deal announcement said,  it “continues to reserve its rights in relation to the A1 licence and will continue with its efforts to protect its interest” through arbitration. However, BP Plc spokesperson did not comment on the arbitration but rather said they had won the license for the A1 offshore block through a bidding process.

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