Medco Buys Into Yemeni Oil, Gas Block
Indonesia’s Medco Energi Internasional has acquired a share in an oil and gas field in Yemen for $90 million.
“The purchase agreement was signed between Medco Yemen and the previous owner, Reliance Exploration & Production DMCC [REPDMCC] on July 5 and it is now awaiting approval from the Yemeni Energy and Mineral Ministry,” Medco said in a statement released in Jakarta on Tuesday.
Upon completion of the agreement, Medco will own 21.25 percent stake in the venture. Cyprus-based Calvalley Petroleum will have a 42.5 percent stake, Hood Oil will also have 21.25 percent, Yemen Oil and Gas Company the remaining 15 percent.
The oil and gas block covers 2,234 square kilometers and is located 350 kilometers northeast of Yemen’s capital, Sana’a. The contract for the block development will end in 2025 with an option for a five-year extension.