Petsec Energy will takeover Australia-listed company AWE’s participating interest in Block 7, located onshore Yemen
According to the aggrement, Petsec Energy will acquire 21.25 per cent participating interest in the oil block, also known as the Al Barqa permit, in exchange for a cash consideration of US$1mn.
Block 7 covers an area of 5,000 sq km, about 340km east of the Yemeni capital Sana.
Terry Fern, chairperson of Petsec Energy, said, “The signing of this agreement is the culmination of a number of years of strategic planning and marks the start of an expansion of Petsec Energy’s portfolio of assets into the Middle East, with the aim of securing high value assets within a region that is highly prospective for oil.
“Block 7 has the potential to add significant oil reserves to the company’s resource base.”
The company added that will further appraise the Al Meashar oil discovery in the area and explore the remainder of the block along with operator Oil Search.
The current partners in Block 7 include Oil Search with 34 per cent, Kuwait Foreign Petroleum Exploration Company with 21.25 per cent, Japan’s Mitsui E&P holding 8.5 per cent and the Yemen General Corporation for Oil & Gas owning the remaining 15 per cent equity.