Bloomberg News

Addax Says Award Boosts Stake in Nigeria Offshore Oil Block

July 16, 2008

Addax Petroleum Corp., the Swiss oil producer operating in West Africa, was awarded a 7.2 percent interest in Block 4 of the Joint Development Zone off Nigeria after settling a dispute with ERHC Energy Inc. (ERHE:US)

A panel at the London Court of International Arbitration said Addax is entitled to the interest. This gives the company a 45.5 percent stake in the deep water exploration license in the Gulf of Guinea, the company said in an e-mailed statement.

``Addax Petroleum will continue to carry the costs associated with ERHC's 19.5 percent interest in JDZ Block 4,'' the company said in the statement.

Addax, which is the operator of Block 4, expects a rig to be delivered in the second half of 2009, delaying drilling that was scheduled to start later this year, the company said.

Addax shares fell C$1.60, or 3.6 percent, to 42.15 dollars as of 12:30 p.m. in Toronto, valuing the company at C$6.56 ($6.55 billion).

To contact the reporter on this story: Maren Naess Olsen in London molsen10@bloomberg.net.

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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Companies Mentioned

  • ERHE
    (ERHC Energy Inc)
    • $0.05 USD
    • -0.00
    • -5.0%
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