Pioneer takes stake in West Africa blocks

Ray Tyson

Petroleum News Houston correspondent

Exploration and production independent Pioneer Natural Resources has agreed to acquire from ROC Oil a 20 percent interest in Blocks H15 and H16 offshore Equatorial Guinea, West Africa, the company said June 7.

Pioneer said it would meet ROC’s obligation to pay 70 percent of the cost of the Bravo-1 exploration well which began drilling on June 6. Pioneer said it also would carry ROC’s retained 15 percent interest through the drilling of a second well currently scheduled for 2005. Pioneer said it also has the right to assume the role of technical manager upon the completion of drilling on the Bravo-1 well provided it meets the criteria. The transaction is subject to normal industry terms and conditions including receipt of government approval, Pioneer said.

Other participants on the block are operator Atlas Group with a 45 percent interest and Sasol with a 20 percent interest.