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FINANCIAL NEWS
Jordan cancels oil exploration deal with Trans-Global
18 Apr 2010
(MENAFN) The Director of the Jordanian Natural Resources Authority (NRA) said that the government has canceled a partnership deal with US Trans-Global Petroleum Exploration Company for exploring oil and gas in the Dead Sea and Wadi Araba, Petra reported.
He pointed out that the decision was made by the Jordanian cabinet after the US company had failed to fulfill its contractual commitments, including reluctance to pay $2 million in fees.
The partnership agreement was signed between both sides in 1997. It included three different exploration phases for eight years, he said. It was then extended by two and a half years. During the exploration period, the company dug four exploratory wells in the Dead Sea and Wadi Araba areas, he added.
On December 23, 2006, Trans-Global Petroleum gave up 80 percent of its shares to Porosity Limited through the first extension of the third exploratory phase, he said.
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