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
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.