Tullow signs PSC with Mauritania

An independent oil industry firm has announced it has joining a production sharing contract (PSC) that will enable it to undertake further exploration.

Tullow Oil made the PSC with the government of Mauritania and will now be permitted to progress the appraisal and development of existing oil discoveries, as well as pursue exploration into new areas covered in the contract.

The UK oil industry firm made the announcement after success in the Jubilee field in Ghana.

Oil has been produced from Chinguetti, Mauritania's first oil field by Tullow before, but the well failed to meet its targets and the firm was considering abandoning the project.

"The announcement injects a new lease of life into Mauritania for which the industry lost its enthusiasm post the disappointing Chinguetti development," Richard Griffith, a London-based analyst at Evolution Securities, told Bloomberg.

He added that the firm hopes to draw on and expand its experience from Ghana to the new exploration opportunities in Mauritania.