Tethys Oil raises stake in Block 56 onshore Oman

Tethys Oil raises stake in Block 56 onshore Oman

Tethys Oil has entered into an agreement with Medco Arabia, a unit of PT Medco Energi Internasional Tbk of Indonesia, whereby Tethys will acquire a 45% interest in the exploration and production license covering Block 56 onshore Oman.

The transaction will increase Tethys' interest in Block 56 from 20 to 65 percent. Tethys Oil will assume operatorship of the block from Medco, who will retain a 5 percent interest in the license. The transaction is subject to government approval.

In consideration for the 45 per cent interest acquired, Tethys Oil will pay $5 million to Medco and will also carry Medco up to $2 million of future expenditure. The agreement further includes additional consideration in the case of a declaration of commerciality under the terms of the license.

Tethys Oil acquired its initial