In 2010 White Nile sold an 80 percent stake to the Canadian oil company, Africa Oil. White Nile sold its remaining 20 percent stake in the South Omo Concession this week to Marathon Oil. Marathon Oil Corporation's subsidiary Marathon Ethiopia Limited B.V. has concluded a sale and purchase agreement with Agriterra Limited to acquire their 20 percent working interest in the South Omo concession in Ethiopia effective of August 17, 2012.
Marathon Oil will pay Agriterra USD 40 million for the assignment of these interests, before closing adjustments, with an additional payment of USD 10 million due upon Marathon Oil's participation in a declaration of a commercial discovery.
Currently Tullow Oil is the operator of the South Omo concession with a 50 percent working interest, followed by Africa Oil with the remaining 30 percent working interest. The concession has an area of roughly 29,465 square kilometre. Tullow Oil is anticipating drilling the first well before the end of 2012.
Agriterra and Marathon Oil are awaiting Ethiopian government's approval to close the deal.
