Zenith Energy has withdrawn from negotiations for a production sharing contract (PSC) for Block 1, which includes the Sèmè oilfield located offshore Benin in West Africa. Zenith Energy was granted a three-month exclusivity period starting in January 2023 to finalize the terms of the PSC. The block covers 551 km² with recent 3D seismic data spanning over 355 km². Discovered in 1967 by Union Oil, Block-1 is situated in shallow water with onshore facilities and a tank farm for oil production processing.

During the three-month exclusivity period, Zenith Energy submitted an offer to the government of Benin on September 15, 2022, to obtain a nine-year operating license for the block. Until April 2023, Zenith was engaged in legal and technical work alongside Benin's Ministry of Water and Mines to finalize the PSC for Block 1.

However, after less than four months, Zenith Energy decided to terminate negotiations with the Ministry of Water and Mines of the Republic of Benin regarding the PSC for Block 1, including the Sèmè oilfield. The company's board made this decision following a comprehensive evaluation of recent geopolitical developments near Benin, the substantial long-term investment required for the successful development of the Sèmè oilfield, and the progress made in other jurisdictions. Zenith intends to focus its technical and financial resources in jurisdictions with comparatively reduced risk for its shareholders.

KeyFacts Energy Industry Directory: Zenith Energy