PT Medco Energi Internasional of Indonesia bought the entire stake of Reliance Industries (RIL) in an exploration block in Yemen for about $90 million closing the deal which was announced in January.
With this deal, Medco Energi will effectively have 21.25 percent participating interest (after taking into account a proportionate carried share of Yemen Oil and Gas Corporation). The Ministry of Oil and Minerals of Republic of Yemen cleared the deal on 24 November 2012.
It may be recalled that the Yemenese government granted the construction license for this Block for the period of 20 years on 25 August 2005. The license also states that the holders of participating interest of this block (the Contractor) has the right to negotiate for an extension of another 5 years after 2025.
The effective economic date of the transaction is January 1, 2012 and the transaction has been approved by the Ministry of Oil and Minerals of Yemen.
Block 9 is located in the province of Hadramaut, Republic of Yemen, about 350 kilometer north-east of the Yemeni capital, Sana’a. The Block, which is located within the Sayun-Masila Basin, has an area of 2,234 square kilometer, in which some of its area has previously been explored.
RIL holds half-a-dozen oil and gas blocks in Peru, Columbia, Australia and three shale gas assets in the US.
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