Marathon Oil signs agreement to explore Ethiopian Rift Basin

oil africa-rsvstks sxc.huMarathon Oil will assist Africa Oil with exploration and drilling. (Image source: rsvstks/sxc.hu)US-based oil and gas company Marathon Oil has signed a farmout agreement with Africa Oil to explore assets in the Ethiopian Rift Basin

According to the agreement, Marathon Oil is likely to acquire 50 per cent ownership in the basin, which covers 42,519 sq km of prospective oil resources and extends to South Omom blocks and Kenyan blocks.

The company will pay Africa Oil around US$3mn as an entry fee to explore resources in the Rift Basin.

Marathon Oil has also agreed to fund US$15mn of Africa Oil’s working interest share of joint venture expenditures in the area.

Africa Oil stated that it will continue to operate the block but Marathon Oil may gain operational rights if the exploration of the block results in profitable discovery.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?