Oil Search sells 40 per cent stake in Yemeni field to Total

Pump-Oil serachTotal has acquired 40 per cent interest in Block 3 in Yemen from Oil Search for US$44 million. (Image source: Glyn Lowe Photoworks/Flickr)Oil Search has completed the sale of its 40 per cent interest in Block 3 (Gardan) in Yemen to Total for US$44mn

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

Total will become the operator of Block 3, Oil Search said in a statement.

“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,” said Peter Botten, managing director of Oil Search.

“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.

“Oil Search’s remaining asset in Yemen is its 34 per cent 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,” Botten added. 

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