Two US oil firms seek exploration deal in Jordan

Jan 28, 1997 01:00 AM

US oil firms Huber Energy and Medallion Exploration are jointly negotiating with Jordan to explore in a 5,000 sq km (1,900 sq ml) area near the border with Saudi Arabia. Khalid al-Shayab, director of Jordan's Natural Resources Authority, said he expected the two firms to clinch the accord to explore the concession in the Sarhan area next month. Shayab told the US firms had arrived at an initial agreement on general principles of the terms of the deal with Jordan, including agreement on oil and gas production sharing. But he declined to say how much money the companies would be committed to invest and how many exploration wells they would drill under the expected agreement. Two other US firms Anadarko Petroleum Corp and Trans Global Resources who signed production sharing accords last year were getting ready to develop their concessions, Shayab said. Trans Global Resources has an eight-year concession to drill for oil the Dead Sea and Wadi Araba region. Jordan's deal with Anadarko commits the US firm to spend $ 20 mm in a 17,000 sq km (6,600 sq ml) area in the north-eastern region. Jordan does not produce oil in commercial quantities but produces 850,000 cmpd of gas for electricity generation.

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