MADAGASCAR EXTENDS AMOCO OIL EXPLORATION AGREEMENT

  Madagascar extended its oil
  exploration agreement with the U.S. Firm Amoco Corp &lt;AN> for 17
  months to allow for further studies of the Morondava basin on
  the southwest coast, a government statement said.
      It said the existing five-year agreement, due to expire
  this July 24, was extended until the end of 1988 to allow for
  additional geological and geophysical studies.
      Amoco has so far laid 7,100 km of seismic lines and sunk
  five exploration wells in the Morondava basin. It may drill a
  further three wells before the end of the extended exploration
  period, the statement said.
      Madagascar has signed oil exploration agreements with four
  foreign oil companies since 1981. But despite promising
  indications of large reserves, no commercial production plans
  have yet been announced.
      The foreign firms - Amoco, Occidental Petroleum Corp &lt;OXY>,
  Mobil Corp &lt;MOB> and a unit of &lt;Ente Nazionale Idrocarburi> -
  are working in partnership with the National Military Office
  for Strategic Industries (OMNIS).
      Roland Ratsimandresy, the director general of OMNIS, said
  at a ceremenony to sign the extension of the Amoco agreement
  that his department would intensify oil exploration with its
  existing partners and would soon offer a new round of
  exploration licences.
  

