Silwana Diamond Group have announced a comprehensive new agreement with ADA Energy from Guinea-Bissauj the week. ADA is represented by the National Petroleum Corporation Petrogen, and have granted concession rights to the UAE company in two regions for oil exploration activities.
It is estimated that the oil reserves in Guinea-Bissau hold an equivalent to 3 billion barrels of crude oil.
With oil price hikes in the region, there has been a renewed focus on improving local production capacity as the global economy heats up post-pandemic.
The new agreement will see the Emirati company extracting one billion barrels, which is estimated at $68 billion at the current Brent crude valuation. This will also provide for the local region production equivalent to 52,000 barrels a day, and more than 19 million barrels extracted per year for local use.
In total, the concession rights cover an area of 14,700 square kilometres, and is 37% of the total area of Guinea-Bissau for exploration activities.
Oil extracted from the region will be primarily exported on global markets with Silwana Diamond receiving a 50% share from the oil reserves, and where the Emirati company is expected to produce 36 million barrels of oil annually within the two regions.
With its global expertise and regional development capabilities, Silwana Diamond have been a key player in the Middle East and Africa, working on a number of high profile projects including a recent government backed project in Sudan.
As the world economy recovers, there is optimism that oil prices can stabilise, in turn, providing a boost to developing markets as demand for oil increases.