Africa Oil Completes Deal with Marathon Oil on Kenya Blocks
From Xinhua
NAIROBI, Oct. 22 (Xinhua) — The Canadian oil and gas firm Africa Oil said on Monday it has completed an agreement with Marathon Oil to acquire an interest in two of Africa Oil’s Kenyan exploration blocks.
Under the farmout agreement, Marathon Oil acquired a 50 percent interest in Block 9 and a 15 percent interest in Block 12A, both in the East African nation.
“We are very pleased to welcome Marathon Oil as a partner with their stature and long history of success in the oil and gas business. We look forward to working together to expand on the success we have had in our East Africa exploration program to date, ” Africa Oil CEO Keith Hill said in a statement.
Hill said net working interests are subject to back in rights or carried working interests, if any, of the respective governments or national oil companies of the host governments.
The statement said Marathon Oil paid Africa Oil an entry payment of 32 million U.S. dollars which includes reimbursement for prior expenditures, and has agreed to fund Africa Oil’s working interest share of future joint venture expenditures on these blocks to a maximum of 25 million dollars, anticipated to be spent over the next three years.
