OMV Starts Exploration Activities in Block 2 in Yemen
OMV says the Production Sharing Agreement for Block 2 ("Al Mabar") has been ratified by the Parliament of the Republic of Yemen. The President of Yemen, H.E. Ali Abullah Saleh, signed the respective Decree on June 7, 2006. The new exploration program will be operated by OMV (YEMEN) Al Mabar Exploration GmbH, a wholly owned subsidiary of OMV. OMV will commence the implementation of the exploration program immediately, which comprises of 2D and 3D seismic acquisition and the drilling of two exploration wells. The minimum financial obligation is US $14 million.
Block 2 is located in the oil-prone Marib-Shabwah Basin in the political Province of Shabwah. The license is located close to the OMV operated Block S2, where OMV already has discovered oil in two wells.
Helmut Langanger, OMV Executive Board member responsible for Exploration and Production stated: "This ratification is an important step for strengthening our position in Yemen as this country is part of our Middle Eastern core region. The new exploration in Block 2 is expected to have similar geological formations as S2 and is a logical next step based on this success. During the last months we have kicked-off the field development project in Block S2 and have made good progress since, production is due to start in 2006. Due to our excellent knowledge about the oil and gas systems in Yemen we want to further expand our activities there."
The interests in Block 2 are OMV (YEMEN) Al Mabar Exploration GmbH: 93% and The Yemen General Corporation for Oil & Gas: 7%.
Block 2 (Al Mabar) is located in the Shabwa Governorate and covers an area of 4,015 sq.km.
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