Oil Search has reported it has signed a Sales and Purchase Agreement to sell its 40% interest in Block 3 (Gardan) in Yemen to Total S.A. of France, for a consideration of US$44 million. As a part of this transaction, Total will assume Operatorship of Block 3.
The completion of the transaction is subject to approvals from the Yemen Government. Oil Search expects to report a book profit on completion of this sale.
Commenting on the transaction, Peter Botten, Oil Search’s Managing Director said: “Oil Search continues to optimise its international acreage portfolio in the Middle East and North Africa (MENA). We are pleased to have sold Block 3 to Total, which has had a strong presence in Yemen since 1987 and has interests in the country’s two oil basins as well as in the Yemen LNG project.
Following the completion of the sale of Block 3, Oil Search’s remaining asset in Yemen will comprise its 34% interest and Operatorship of Block 7 (Al Barqa), which contains the Al Meashar oil field, discovered in 2010. The Company is currently planning a 2D seismic programme over prospective areas of the Block, which will be acquired in 2012, subject to the political and security situation.
Oil Search remains focused on exploration licences with material upside potential in the MENA area and looks forward to drilling high impact exploration wells in Kurdistan and Tunisia during 2012.”
