OKLAHOMA CITY, April 8 /PRNewswire/ -- Kerr-McGee Yemen Ltd. (KMYL), an
affiliate of Kerr-McGee Oil & Gas Corp., has signed an exploration agreement
with the largest producer of oil in Yemen. Canadian Petroleum International
Holdings Ltd. (CPIHL), an affiliate of Canadian Occidental Petroleum Ltd.,
will join Kerr-McGee in the exploration of Blocks 50 and 51 in Yemen.
Canadian Occidental Petroleum Yemen operates Block 14 in Yemen, which
commenced production in 1993, and currently produces approximately 200,000
barrels of oil per day. Block 51, including almost 2 million acres, lies
immediately west of Block 14. Block 50, with more than 8 million acres, is
located north of Block 51.
"The agreement between CPIHL and KMYL will allow us to take advantage of
existing infrastructure and increase the efficiency of our operations," said
Luke R. Corbett, chairman and chief executive officer of Kerr-McGee Corp.
"This is a continuation of Kerr-McGee's goal of creating worldwide
partnerships to explore, develop and produce oil and gas in a prudent, cost-
efficient manner."
The interests in Block 51 will be KMYL 43.75%, CPIHL 43.75% and The Yemen
Company, an affiliate of the Yemen Ministry of Oil and Mineral Resources,
12.5%. The interest in Block 50 will be KMYL 47.5%, CPIHL 47.5% and The Yemen
Company 5%. Seismic operations are in progress on both blocks, with the first
well for Block 51 scheduled in the second half of 1998.
Kerr-McGee Oil & Gas Corp. is a subsidiary of Kerr-McGee Corp.
(NYSE: KMG), an Oklahoma City-based energy and chemical company with assets of
$3.1 billion. |
