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The Mabi Block is believed to have an estimated 240 billion cubic metres of CBM reserves and has the advantage of being close to the massive West-East pipeline; facilitating easy transportation of methane produced from the block.
It is understood the US company will carry the exploration risks during the five-year term of the contract but, during the development period, both firms will invest and share the costs of production based on their respective investment stake.
Neither firm was available for comment.
