ARCO CONFIRMS AGREEMENTS WITH NIMIR PETROLEUM LTD. TO PROVIDE EXPLORATION, DEVELOPMENT SERVICES IN YEMEN
ARCO CONFIRMS AGREEMENTS WITH NIMIR PETROLEUM LTD.
TO PROVIDE EXPLORATION, DEVELOPMENT SERVICES IN YEMEN
LOS ANGELES, Nov. 5 /PRNewswire/ -- ARCO (NYSE: ARC) confirmed today that a subsidiary, ARCO Shabwa Inc., has signed agreements with Nimir Petroleum Company Ltd. to provide exploration and development services relating to Block 4 in the Shabwa province of the Republic of Yemen. The agreements are subject to approval by the government of the Republic of Yemen.
Nimir remains operator and sole interest owner of Shabwa Block 4. In addition to providing services to Nimir, ARCO Shabwa Inc. has an option, subject to approval by the government of the Republic of Yemen, to acquire an equity interest in the block at the completion of the minimum work program.
Technoexport, the former service contractor to the government of the Republic of Yemen, is said to have discovered three fields in the block, one of which has had limited production. In addition, Technoexport had constructed an oil pipeline to an export terminal on the coast of the Arabian Sea.
As service contractor to Nimir, ARCO Shabwa Inc. will begin an evaluation and assessment program to determine the hydrocarbon potential of the block, including the existing fields.
/CONTACT: Albert Greenstein of ARCO, 213-486-3384/
(ARC) CO: ARCO ST: California IN: OIL SU: EH-CH -- LA017 -- 1350 11/05/91 15:07 EST