Petsec Energy has completed an agreement with Mitsui E&P Middle East B.V. to acquire its 8.5% participating interest in the Block 7 (Al Barqa) permit in the Republic of Yemen, Petsec said in a news release.

Block 7 is an onshore exploration permit covering an area of 5,000 sq km (1,931 sq miles) located about 340 km (211 miles) east of Sana’a, the capital of Yemen. The block is operated by Australia’s Oil Search Ltd. and contains the Al Meashar oil discovery as well as an inventory of leads and prospects defined by 2-D and 3-D seismic surveys.

The terms of the transaction include a cash consideration of $400,000, the replacement of Mitsui’s existing letter of credit with the Arab Bank and working capital adjustments on completion. Completion of the transaction is subject to customary approvals from the joint venture partners, the Yemen government and the state-owned Yemen Oil and Gas Co.

The agreement will increase Petsec’s interest in Block 7 to 29.75%. Oil Search holds 34% interest, KUFPEC (Aden) Ltd. hold 21.25%, and the Yemen General Corp. for Oil and Gas holds 15%.