(Ecofin Agency) - Sterling Energy has announced that the operator of the Odewayne Production Sharing Agreement (PSA), Genel Energy, has been awarded 2 years extension to the current periods of the PSA by the Government of the Republic of Somaliland.

Under the PSA, the third exploration period will now expire by November 2, 2018, fourth period (which is optional) will expire by May 2, 2020, fifth period (optional) by May 2, 2021 while the sixth period (optional) will end by May 2, 2022.Minimum work obligations for the exploration periods includes the procurement of a 500km 2D seismic during the third period and the acquisition of 1,000km of 2D seismic and one exploration well in the fourth period.

Genel operates the PSA with 50% interest alongside Sterling with 40% interest. Genel is to carry Sterlings costs of all exploration activities during the third and fourth periods of the PSA.The joint venture partners had before announced that the acquisition of a 2D seismic in the large onshore Odewayne PSC block will either begin in late 2016 or early 2017 as seismic operations in Somaliland was postponed for a while as a result of environmental insecurity, Oil News Kenya reports.

Anita Fatunji