Kilimanjaro Capital and Amsas sign deal for Somalia oil project

onshore rigKilimanjaro Capital acquired a five per cent non-operating working interest in the ACA block in Somalia. (Image source: Richard Harrison/Flickr) Kilimanjaro Capital has signed a farmout deal with Amsas for exploring the Amsas-Coriole-Afgoye (ACA) oil block in Somalia

According to a statement by the investment firm, Kilimanjaro Capital has acquired a five per cent non-operating working interest in the block as a part of the deal.

The ACA Block is a 4,700sq km coastal stretch, located south of Mogadishu. Amsas had bought 49 per cent of the block in 2008. The consultant estimated that the block contained between one and five billion barrels of oil equivalent (boe).

Kilimanjaro Capital chief executive officer Zulfikar Rashid said, “The ACA agreement plays to Kilimanjaro Capital’s strengths in the African frontier markets. We are pleased to be working with a Somalian company.”

Amsas also possesses the right of first refusal for another three unclaimed blocks within the borders of Somalia, which once were allotted to Eni, Chevron, ConocoPhillips, Pecten and Amoco.

According to Kilimanjaro Capital’s executives, Amsas’ rights potentially overrides claims by newcomers such as Africa Oil, Ophir Energy, Asante, Maruader and Range Resources who have been granted exploration licenses by regional administrations.

Kilimanjaro Capital also added that it will support Amsas’ bids for other blocks with conventional and alternative means of financing.

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