YEMEN AWARDS MORE EXPLORATION PERMITS
Yemen has issued new exploration permits in its East Shabwa area, where a Soviet group is developing oil fields.
Yemen's Petroleum Ministry awarded three blocks to BP Exploration. The latest deal follows the award of new acreage to Occidental Petroleum Corp. last month (OGJ, Oct. 22, p. 45).
In the final stages of negotiating other acreage in Yemen are Chevron Corp. for Block 3 and Crescent Petroleum, Sharjah, Blocks 2 and 9.
BP's East Shabwa Blocks 7 (Al Barqa) and 8 (Asakir) cover 4,700 sq km. The company also has acquired the 9,000 sq km Antufash block in the Red Sea. Terms are for an initial period of 6 years.
OXY ACREAGE DETAILS
Oxy is participating in the Yemeni block 50-50 with Consolidated Contractors Co., Athens.
They received the 674,000 acre Block S2 (Al-Oglah) in East Shabwa, one of two awarded on production sharing terms to the Soviet company Technoexport. Technoexport is also responsible for developing the East Shabwa oil fields.
However, the Soviets handed back the two blocks in the summer after suspending initial production from fields in Block 4 in a dispute with the government. Technoexport's S1 block is still unallocated.
In addition to its 2 year work program of four wells, Oxy will pay a signature bonus of $20 million and a further $20 million to be used by the ministry to compensate Technoexport for earlier exploration work on the block.
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