Africa Oil sets up new company for Somalia deal

Africa Oil has set up a new company ahead of planned exploration work in Somalia’s notorious Puntland region.

The Canadian independent has joined forces with capital pool firm Denovo Capital Corp to form Puntland Petroleum Group.

Africa Oil has also signed a contract with an unidentified drilling subcontractor which will pave the way for a milestone exploration well in Puntland which will be drilled in the third quarter of the year, according to Africa Oil’s joint venture partner, Range Resources.

Africa Oil and Australian-based Range already have holdings together in two prospects in Puntland, with drilling scheduled to begin later this year.

The Horn of Africa country’s semi-autonomous Puntland region is notorious for being an operating ground for pirates who hijack merchant vessels in the Gulf of Aden and Indian Ocean.

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