Tuesday, January 18, 2011

Somali Region Extends Contract With Africa Oil

Somali region extends contract with Africa Oil

Jan 18, 2011
By The Associated Press

NAIROBI, Kenya (AP) — Africa Oil says the government of Somalia's semiautonomous northern region of Puntland has extended their oil drilling agreement for a year.

The statement from Monday says the agreement has been extended until Jan. 17, 2012.

The joint venture between Africa Oil, Range Resources Ltd. and Lion Energy Corp. requires the partners to drill one well by July 27 and another by next Jan. 17. A new partner, Red Emperor, has also joined the venture.

A statement by Africa Oil chief executive Keith Hill said he believes Puntland could hold similar oil reserves to Yemen. Yemen has more than 6 billion barrels of discovered reserves.

Puntland has a functioning government and is considered relatively stable compared with southern and central Somalia.

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