Soco Confirms Congo Presidential Decree Ratified Oil Rights

Soco International PLC (SIA.LN) Monday confirmed a Congolese presidential decree had ratified its rights to a key oil block.

President Joseph Kabila on June 18 confirmed licenses to two blocks in Eastern Congo-Kinshasa, including the Soco one, that had been awaiting his approval since December 2007. The blocks are close to an area of Uganda where huge discoveries have been made.

But in two other blocks, he replaced Tullow Oil PLC (TLW.LN) and Heritage Oil PLC (HOIL.LN) by companies owned by a South African businessman.

In a statement Monday, Soco said the "production sharing agreement for block 5 in the Albertine Graben area of the Democratic Republic of Congo has received the Presidential decree, the final step in the concession award of the block."

During the initial five year exploration period, the U.K. independent company and its partners have committed to acquire at least 300 kilometers of seismic data and drill two exploration wells.

Soco announced it would be the operator of the block with a 38.25% stake. A unit of Dominion Petroleum Ltd (DPL.LN) owns 46.75% and state oil company Congolaise des Hydrocarbures 15%.

-By Benoit Faucon, Dow Jones Newswires; [phone]; [e-mail]