Occidental to explore Yemen block

Occidental Petroleum Corp. has signed an agreement with Yemen to explore Block 44 in the Hadramaut province in the center of the country.

The block covers 6,335 sq km just north of Occidental's holdings in the Masila (Block 14) and East Shabwa (Block 10) operations, which produce more than 250,000 b/d.

Occidental said it expects the geology of Block 44, in the Sanyun-Masila basin, to be similar to Masila.

The exploration phase is expected to take 3 years, with drilling operations to begin in early 2003.The work commitment is divided into two phases.

The first calls for the acquisition of 300 km of 2D seismic data and drilling one exploratory well. Occidental and partner Ansan Wikfs (Hadramaut) Ltd., of Sana'a, Yemen, could opt to drill a second exploratory well during this phase.

During the second phase, the partners will acquire another 200 km of 2D seismic data and 150 sq km of 3D seismic data, as well as drill an exploratory well. The partners could opt to drill another well.

Occidental operates the block with 75% working interest and Ansan Wikfs holds 25%. The Yemen Co., Yemen's national oil company, has a 7% carried interest if commercial quantities of oil are discovered in the block.