London-based Panoro Energy has announced that its subsidiary Pan Petroleum Gabon has reached a final investment decision (FID) on the Dussafu development project in offshore Gabon.

Pan Petroleum Gabon, which has an 8.33% working stake in the Dussafu production sharing contract, has approved the work program and budget proposed by the Dussafu oilfields operator BW Energy Gabon.

The first oil from the Dussafu development project is expected to be produced in 2018, with an estimated total expenditure of $150m.

According to the development plan, the partners in the project will drill two initial horizontal wells at Tortue in the Gamba and Dentale reservoirs.

There is also a plan to drill an appraisal side-track in the northwest of the Tortue field, while two production wells are expected to be tied back to a leased FPSO through subsea trees and flowlines.

Panoro CEO John Hamilton said: “The FID is a very important milestone for Panoro and first oil at Dussafu remains on track to be achieved during the second half of 2018.

“It is a significant step in the execution of Panoro’s strategy to realize Dussafu’s true potential and to continue unlocking value for our shareholders”.

In April, BW Energy Gabon which is a subsidiary of BW Offshore had acquired 25% stake from Pan Petroleum Gabon in the Dussafu production sharing contract for $12m.