Genel Energy Receives 2 year extension at the Odewayne Production Sharing Agreement

Sterling Energy has announced that the Government of the Republic of Somaliland has granted the operator Genel Energy  a further 2 year extension to the current period of the Odewayne Production Sharing Agreement (PSA).

The expiry dates of the relevant exploration periods under the PSA shall now be:

  • Third Period: 2 November 2018;
  • Fourth Period (optional): 2 May 2020;
  • Fifth Period (optional): 2 May 2021; and
  • Sixth Period (optional): 2 May 2022.

The minimum work obligations for the exploration periods remain unchanged:

  • the acquisition of 500km of 2D seismic during the Third Period; and
  • the acquisition of 1,000km of 2D seismic and one exploration well during the Fourth Period.

Sterling holds a 40% interest in the PSA and will be carried by Genel (50% interest and Operator) for the costs of all exploration activities during the Third and Fourth Periods of the PSA.

“We would like to thank the Government of the Republic of Somaliland and Genel for agreeing to the further 2 year extension. We look forward to the commencement of the seismic campaign,”said the Company’s Chief Executive Officer Eskil Jersing.

During the last announcement the joint venture partners announced that the acquisition of 2D seismic in the large onshore Odewayne PSC block will commence in late 2016, early 2017.7

The seismic operations in Somaliland have been temporarily suspended for a while due to deterioration in the security environment.

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