Silwana Diamond Group this week announced the signing of a comprehensive new oil exploration agreement in Guinea-Bissau.
Further supporting regional development, the new oil exploration agreement between ADA Energy and Silwana Diamond will help revive the local economy, and provide crude oil production to help businesses and consumers.
The estimated oil reserves in two key regions where Silwana Diamond will be operating in has around 3 billion barrels of crude. This equates to a local value of 250 billion dirhams ($68 billion), with more than 52,000 barrels a day set to be extracted from just one of the regions alone.
In total, the agreement will mean that UAE’s Silwana Diamond will have concession rights over an area totalling 14,700 square kilometres, with a 50% share of oil reserves.
The Emirati company is aiming to produce up to 36 million barrels of oil per year, which could make a significant impact in the region, and help exports as global oil demand picks up post-pandemic.
Countries including the UK and in the EU have seen considerable inflation pressures on oil prices as global demand heats up and producers struggle to meet fast rising pressures.
With ADA Energy, represented by the National Petroleum Corporation Petrogen working with Silwana Diamond, there’s optimism that the new development could help to revitalise Guinea-Bissau as one of Africa’s top destinations for investment.
Following on from the announcement, the agreement will cover 37% of Guinea-Bissau’s oil fields.