A new oil exploration agreement has been signed between Silwana Diamond and ADA Energy in Guinea-Bissau, part of a strategic development plan to boost production in the region.
Following the increased global demand for oil production and recovering markets including the U.S. and the U.K., the African region has been seeking to increase exports of crude oil to help aid its growth while attracting investment.
The new oil exploration agreement signed between UAE’s Silwana Diamond and ADA, represented by the National Petroleum Corporation Petrogen, sees two regions of Guinea-Bissau being prioritised for exploration. This will account for 37% of the total oil field capacity within the African nation.
It is estimated that the oil fields within the region contain up to 3 billion barrels of crude oil, making the new discovery of oil a significant development that could help re-shape the region’s economy.
As part of the agreement, Silwana Diamond will receive a 50% share from oil reserves with the Emirati company pledging to produce 36 million barrels of oil annually from the two regions. The total estimated area of potential production covers 14,700 square kilomoteres and marks a new milestone in Silwana Diamond’s regional development projects.
Following a host of comprehensive infrastructure milestones in Africa and the Middle East, the group is forging ahead with new partnerships to help local producers expand their production. And with a global economy in recovery, the region of Guinea-Bissau is set to experience an increase in inward investment. With the help of more oil production, there will also be additional local capacity to provide Africa’s growing domestic market with oil reserves for businesses through to consumers.