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Baraka to farm-out Mali blocks
Perth-based Baraka Petroleum has signed an agreement to farm-out major stakes in five Taoudeni basin blocks in Mali to Italy’s Eni and Algerian national oil company Sonatrach.
Under the agreement, Eni will earn a 50% operating interest in blocks 1,2,3,4 and 9 while Sonatrach will earn a 25% stake in the blocks.
In exchange, Baraka will recover all past costs associated with the first and second years of the exploration programme. It will also be carried to a maximum of $19 million for expenditure in the third year.
The agreement is subject to approval from the Malian Minister of Mines, Energy and Water.