Worldwide Energy News - Article
This article is extracted from International Oil Letter, Vol 23 issue 34, published 27 August 2007.
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Lundin Petroleum AB awarded two more Ogaden tracts - Ethiopia
Lundin Petroleum has significantly expanded its presence in the Ogaden Basin through the recent award of Block 7 (12,100 sq km) and Block 8 (11,062 sq km). Fiscal terms and commitments include an initial four-year term and one single exploration well to be drilled in Block 7 or Block 8. The company has the option to extend for two additional two-year terms after relinquishing acreage. The Ethiopian government has an option to participate with up to a 10% interest following any commercial discovery. The company’s holdings in the Ogaden Basin, which include blocks 2 and 6, now extend to 47,500 sq km. All are located immediately west of the 4 Tcf Hilala and Calub gas and condensate fields and are considered as frontier acreage. In addition, the company has also been awarded a production sharing agreement covering the Adigala Area (27,500 sq km) in northern Ethiopia at the border with Djibouti. The company plans to acquire aero-gravity/magnetic data in what it describes as a totally unexplored basin. Lundin is expecting geological similarities with adjacent basins in Somalia and Yemen.