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Repsol-Partex Algarve drilling contract deposit close to being lost

REPSOLPortugal’s ‘National Entity for the Fuel Market’, or ENMC formally has proposed to the Government that the deposit lodged by the Partex-Repsol oil exploration consortium should be forfeit due to the failure of the companies to comply with their work plan as detailed in the contract.

The oil exploration contracts, which the last government signed with the Repsol-Partex consortium, stated that the first offshore well in the Algarve exploration area would be drilled in 2016.

The government has decided to terminate these contracts as no drilling has taken place, much to the joy of anti-oil protestors and Algarve residents.

The ENMC already has proposed the execution of the deposit bond, this has been confirmed by a source close to the Secretary of State for Energy, and the ENMC now has to listen to interested parties within a set deadline before being able to bank the €4.5 million deposit.

The agreement entered into with Repsol and Partex provided for exploration, research, development and the production of oil in the Algarve basin. The consortium planned to drill a hole 40 to 50 kilometres off the coast of the Algarve, to the south of Faro.

This the consortium has failed to do, due to the publicity triggered by an effective anti-oil movement and the continuing low price of oil on the international market.

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Comments  

+2 #2 Ed 2016-12-28 23:18
Quoting liveaboard:
With all due credit to the tireless anti-oil protesters, I suspect in the case of the offshore drilling that low oil prices had more effect than civil objections on shore.

A bit of both I think. The Partex boss said the company 'would go where it was wanted' and clearly was fed up with the protestors, especially when the Gulbenkian Foundation was starting to be targetted. Had there been no protests, I think drilling would still be going ahead, especially in the field to the south of Faro where there are large proven gas reserves.
+2 #1 liveaboard 2016-12-28 23:11
With all due credit to the tireless anti-oil protesters, I suspect in the case of the offshore drilling that low oil prices had more effect than civil objections on shore.

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