Swedish independent oil and gas exploration and production company Lundin Petroleum has signed a farmout agreement with New Age African Global Energy for the production sharing contracts in Ethiopia.

Lundin Petroleum will transfer a 15% license interest to New Age, in the production sharing contracts (PSCs) covering Blocks 2, 6, 7 and 8 located in the onshore Ogaden Basin, southern Ethiopia and a 50% interest in the PSC covering the Adigala Area, northern Ethiopia.

New Age will pay a disproportionate share of the costs related to the 2D seismic programs to be carried out on the blocks, as well as its interest share of Lundin Petroleum’s past costs and other ongoing costs. Lundin Petroleum will remain as operator of all of the Ethiopian blocks.

The farmout transaction is subject to approval of the appropriate regulatory authorities from the government of Ethiopia.