Aabar Petroleum Makes Debut in Africa

Aabar Petroleum Investments Company PJSC says that its wholly owned subsidiary Dalma Energy has won a drilling contract in Algeria, marking Aabar's entry into Africa.

The one-year contract awarded to Dalma Energy by RepsolYPF, is valued at AED 85 million (US$ 23.24 million) and includes an option of a six-month extension valued at an additional AED 43 million (US$ 11.74 million). RepsolYPF, Spain's largest oil company operates in Latin America, the Middle East and North Africa and is listed on the New York Stock Exchange.

Under the terms of the contract, drilling operations are expected to commence in June 2007 with the deployment of two deep drilling land rigs. The rigs have a capacity of 2,000 HP (horse power) and were built in China at an estimated cost of AED 80.74 million (US$ 22 million) each.

With this contract, the number of new rigs commissioned by Dalma Energy this year goes up to four, and takes the company's total rig count to 22. "We are pleased that Dalma continues to perform commendably and has doubled the size of its operations since its acquisition by Aabar in July 2005. This contract with RepsolYPF marks the expansion of our operations into Africa, a region that holds out excellent potential for growth" said Sohail Al Mazrui, Chairman of Aabar.