Otis Energy Limited has signed an agreement with Mitsui E&P Middle East BV for the latter to get an 8.5 per cent working interest in Yemen’s Block 7
Located approximately 400km west of the capital city Sana’a, Block 7 covers an area of 2,950 sq km. The block is operated by Australian-listed company Oil Search Limited.
So far 10 wells have been drilled in the block with two wells — Al Meashar 1 and 2 — testing oil to surface.
The signing of the agreement, which is a conditional offer to Mitsui, is the first stage in a confidential process defined by the joint operating agreement for Block 7.
The completion of the acquisition is subject to effective approval from the remaining joint venture partners in the block and from the Yemen government.
Barnaby Egerton Warburton, managing director of Otis, said, “We are very pleased to have made this offer to Mitsui and look forward to the successful completion of a transaction and the development of a long-term relationship with Mitsui’s highly professional Middle East team based in Dubai.
“This is the culmination of a number of years of reviewing opportunities in the region and the beginning of an exciting period of growth and expansion of our portfolio.”
