The oilfield business of Swiss-based oil trader Vitol has agreed to pay up to $225 million in support of development work to Africa-focused and Edinburgh-based Bowleven in exchange for part of the Etinde permit in the shallow water off Cameroon, West Africa.

The farm-in deal is seen evolving in two parts: $100 million to fund a first work programme and gain a 25-percent working interest, and then another $100 million for another 25 percent stake under option plus $25 million in cash to Bowleven.

“If successful,” drilling will “move the assets toward development”, a Vitol statement said. Vitol is a $190-billion-a-year oil trading company. The prolific Etinde area is three blocks — MLHP-5, MLHP-6 and MLHP-7 — covering two producing basins and has been subject ot a production-sharing deal since December 2008, when three years of exploration work was agreed.

The Bowleven group has drilled four wells on Etinde since 2007, and all were successes. The company estimates its Etinde Permit reserves are 225 million barrels of oil, 129 MMbbls of natural gas liquids and 1 trillion cubic feet of gas.

Pending development activity, there is no production on the acreage.

Tags: Bowleven, Vitol E&P