Niger grants E & E permit to TG World Energy

TG World Energy has been granted a permit for oil exploration and exploitation by Niger in a region of the West African nation just south of the Algerian desert. The permit for the Tenere Block covers an area of 70,000 sq km and is for 10 years, divided in three distinct periods for evaluation of the search.
TG World Energy agreed to invest at least 200 million CFA francs ($ 350,000) during the first two years on geological studies and could start drilling a test well by 1999 if results are encouraging. The state, which has projected investments of up to 20 billion CFA ($ 350 mm) in the search for oil over the next three years, is expected to take a 10 % holding in the venture in an eventual production phase.
"We are convinced that this Tenere zone is rich in oil and gas," said TG World Energy's MD Robert Maiklem who signed alongside Niger's Mines Minister Manga Boukar.
It was the third oil search deal signed by the government of Niger after one with US company Hunt Oil, also for the northern region, and with France's Elf Aquitaine in partnership with Exxon.