Not all regions of the world with proven oil are receiving attention from struggling oil companies. But as the lesser prospects get put on the shelf, companies are focusing on some of their core areas.
West Africa is one area that is not losing a ton of interest even though oil prices are low. In fact, there is one country that has the potential for some very positive news in the coming months.
West Africa is a promising place for offshore oil drilling. Ghana has generated the most headlines in recent years, after several major discoveries kicked off that nation’s offshore rush. However, Senegal is another West African nation that holds huge potential.
Cairn Energy (LON: CNE), a British oil and gas exploration company, opened up an entire new basin for oil exploration in 2014 when it drilled two wells off the coast of Senegal and discovered oil in both. The finds were significant. Together, the two discoveries could hold more than 1 billion barrels of oil.
Cairn is exploring three blocks off Senegal’s coast – the Rufisque offshore, Sangomar Deep Offshore, and Sangomar Offshore, which stretch over 7,000 square kilometers. Cairn is the operator with a 40 percent interest in the blocks, and it has three partners as well, including ConocoPhillips (NYSE: COP) (35 percent stake), FAR Limited (ASX: FAR) (15 percent stake, Senegal’s state-owned firm Petrosen (10 percent stake).
Its first discovery was drilled…