Jordan Times
Thursday, March 4, 2004
NRA extends licence for US firm to explore for oil, gas
By Khalid Dalal
AMMAN — The state-run Natural Resources Authority (NRA) has extended for six months the licence given to the US Trans Global Petroleum Jordan Ltd. Company to explore for oil and gas in the Dead Sea and Wadi Araba areas, a senior authority official said Wednesday.“The period was extended upon a request from the company whose licence to dig for oil and gas ended mid-February,” said NRA Director General Mohammad Gharaibeh.
He attributed the extension to the delays faced by the company in its drilling work last year due to the political situation in the region. The official was referring to the war on Iraq and the Palestinian uprising against Israeli occupation forces.
While drilling the first well to a depth of nearly 3,100 metres underground, Trans Global was forced to halt its operation because of “hard geological conditions.”
Gharaibeh revealed that the result of drilling the Issal-1 well was negative as there were no indications of oil or gas available in the area.
In 1996, the US firm signed a deal for oil exploration with NRA to evaluate the petroleum potential of the 6,500 square kilometres licensed area in the Dead Sea and Wadi Araba.
In line with the agreement, the government assumes no risk since it shares only in production profits and not in the cost of exploration.
Trans Global, which has invested around $16 million in exploration for oil in Jordan, is a wholly-owned affiliate of the Houston-based Trans Global Petroleum Exploration Company.