Under the terms of the LoI, COSL will carry out turnkey drilling works for two wells with an aim to find more hydrocarbons.

Primeline said it has been negotiating with potential drilling contractors in the region during the last few months to secure optimal contract terms for a cost-effective drilling operation.

The $20m drilling contract is planned to begin in August.

Upon assessing the results of the first well, LS23-1-1, the second well will be selected by the company from two further candidate locations.

The exploration drilling program represents the initial step in Primeline’s rolling development strategy.

Primeline is the operator of the petroleum contract for Block 33/07 and is partnered with China National Offshore Oil (CNOOC).