ERHC Says Letter of Intent Signed for Kenya Oil Block Stake
ERHC and its potential partner will negotiate terms of an agreement for Block 11A, which will be subject to government approval, the Houston-based company said in a statement today.
Tullow Oil Plc (TLW), the U.K. explorer that found billions of barrels from Uganda to French Guiana, in November said it had made a second discovery in Kenya, which has East Africa’s biggest economy, raising prospects the country will become an oil producer.
James Arnold, an investor relations manager at Tullow, didn’t immediately respond to an e-mail seeking comment on whether the company was a partner in the block. Daniel Keeney, a spokesman for ERHC, also didn’t respond to an e-mail request to identify the partner.
ERHC signed a production-sharing contract with the Kenyan government for the almost 12,000 square-kilometer (7,456 square- mile) block in July, the company said. Block 11A is located on the border of South Sudan.
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