Total takes 40% stake Yemeni field for $44 million

Total has assumed operatorship of the Gardan block in Yemen for $44 million.

Oil Search has completed the sale of its 40% interest in Block 3 (Gardan) in Yemen to Total for $44 million.

Based on the current book value, an after tax profit from the sale of approximately $28 million will be added to Oil Search’s 2012 full year results.

Total will become the operator of Block 3.

“The completion of the sale of Oil Search’s interest in Block 3, Yemen is in line with our strategy to optimise our international acreage portfolio in the Middle East and North Africa, with a focus on licences with material upside. Drilling is currently underway on a large prospect in Kurdistan, with encouraging preliminary indications, and a high potential well in Tunisia is due to commence drilling in early 2013,” said Peter Botten, managing director of Oil Search.

“Oil Search’s remaining asset in Yemen is its 34% interest and Operatorship of Block 7 (Al Barqa), which contains the Al Meashar oil field, discovered in 2010. The Company is planning to acquire a 2D seismic programme over prospective areas of the Block in 2013, subject to a stable and safe operating environment prevailing in this area,” he said.

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