Tangiers Petroleum Limited announce that the Ministries of Energy and Finance in Morocco have officially approved the assignment of a 50 per cent interest in the Tarfaya Offshore Block from Tangiers to Galp Energia (Galp). Tangiers will maintain a 25 per cent interest in the Tarfaya Offshore Block.
The signed Joint Order from the Ministries means Galp will now assume operatorship of the Tarfaya Offshore Block which comprises eight exploration permits. Pursuant to the farm-out agreement, Galp is obliged to expend US$40.5 million which will include up to US$7.5 million in back costs reimbursable to Tangiers and the cost of an exploration well (TAO-1), limited by a cap, to be drilled within the Tarfaya Offshore area. With the receipt of the Ministerial approvals, the back costs reimbursement is expected to be paid shortly.