Global's Executive Chairman, Dr John Armstrong, said Woodside would acquire a 40% interest and assume the role of operator in four Kenyan blocks, equivalent to about 200 North Sea blocks, in which Global has a 20% interest.
The remaining 40% is held by UK-based Dana Petroleum (E&P) Limited which farmed out the 40% stake to Woodside.
Woodside's equity will revert to Dana and Global unless two wells are drilled. If the wells are drilled, then Woodside will fully carry Global's share of the cost of these wells, including testing if required.
Should Woodside and Dana determine the need for 2D seismic in excess of the 5,000km farm-in commitment and/or 3D seismic, then Global's share of the cost of this work will also be fully carried by Woodside.
Woodside, as new operator, is planning to record the 5,000km of farm-in seismic in the 3rd quarter of this year.
"Earlier mapping by Dana has identified some 100 leads spread amongst several play types within these blocks," Dr Armstrong said.
"We are also encouraged by Woodside's assessment that there are a variety of different geological features on the Kenyan project with a size of possible prospects of 50 to 1,000 million barrels."
"Having such an internationally experienced oil and gas company as Woodside involved as operator provides a major boost to the potential of the exploration effort on what is the flagship project within Global's suite of assets," Dr Armstrong said.
"Woodside's technical expertise and its previous exposure to Africa's petroleum sector through its Mauritanian drilling program, will contribute a sharp and purposeful edge to the Kenyan exploration," Dr Armstrong said.
Global - which holds the equity in its Kenya Licences via a wholly-owned subsidiary, Star Petroleum International Kenya - will retain its free-carried interest in the work program. This will now include a doubling of the acquisition of 2D seismic to 5,000km, and options to drill two wells.
The four Kenyan blocks, L5, L7, L10 and L11, total 47,500 square kilometres and are in water depths of up to 3,000m. It is the first oil exploration offshore Kenya by anyone in 20 years and drilling could be as early as 2005.
