Oman awards 4 new oil blocks

Muscat Daily - - BUSINESS -

Oman’s Min­istry of Oil and Gas on Tues­day signed four new ex­plo­ration and pro­duc­tion shar­ing agree­ments with four com­pa­nies for devel­op­ing con­ces­sion blocks 30, 31, 49 and 52.

Con­ces­sion blocks 30, 31 and 49 are on­shore blocks, while block 52 is an off­shore block.

Un­der these agree­ments, the com­pa­nies have agreed to un­der­take ge­o­log­i­cal and geo­phys­i­cal stud­ies along with 2D and 3D seis­mic ac­qui­si­tion and drill wells dur­ing ex­plo­ration pe­ri­ods.

Agree­ments were signed by H E Dr Mo­hammed bin Ha­mad al Rumhi, Min­is­ter of Oil and Gas, on be­half of the Omani gov­ern­ment and by the rep­re­sen­ta­tives of the re­spec­tive com­pa­nies.

The first agree­ment was signed with Tethys Oil, a Swedish petroleum com­pany, for devel­op­ing block 49, which oc­cu­pies an area of 15,439sqkm.

Speak­ing to re­porters af­ter sign­ing the agree­ment, Mag­nus Nordin, man­ag­ing di­rec­tor of Tethys Oil said, “We have al­ready be­gun analysing the data pro­vided to us by the min­istry and af­ter that we would be un­der­tak­ing seis­mic stud­ies to ex­plore the pos­si­bil­i­ties of hy­dro­car­bon re­serves.”

Ear­lier, blocks 49 and 52 were re­lin­quished by Irish oil firm Cir­cle Oil as it failed to ex­plore prof­itable hy­dro­car­bon re­serves that can be ex­tracted.

On Tethys’ chal­lenge to find re­serves in blocks where other com­pa­nies failed to do so, Nordin said, “We are part­ners in block 3 and 4, which were awarded to five or six op­er­a­tors and they all de­cided that noth­ing ex­tractable can be found there. To­day that block is pro­duc­ing around 14,000 bar­rels per day. So we be­lieve that we are good at out of the box think­ing and to look at data in a new way.”

On pro­posed in­vest­ments, he said it would de­pend on ex­plo­ration and pro­duc­tion po­ten­tials but would cer­tainly be in mil­lions of dol­lars.

Sec­ond agree­ment was signed with ARA Petroleum for the con­ces­sion block 31, which oc­cu­pies an area of 8,528sqkm.

Third agree­ment was signed with a pro­posed joint-ven­ture be­tween Oman Oil Com­pany Ex­plo­ration and Pro­duc­tion (OOCEP) and Oc­ci­den­tal Oman for block 30, which oc­cu­pies an area of 1,185sqkm.

Fourth agree­ment was signed with a joint-ven­ture be­tween Ital­ian oil com­pany Eni and OOCEP for devel­op­ing off­shore block-52, which oc­cu­pies more than 90,000sqkm of area.

(Muscat Daily)

The agree­ments were signed for con­ces­sion blocks 30, 31, 49 and 52

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