Maha Energy signs operating pact with Mafraq for Block 70

Upstream oil and gas company Maha Energy, through its whollyowned subsidiary Maha Energy (Oman) Ltd and Mafraq Energy have entered into a joint operating agreement (JOA) for Block 70 in Oman.

The signature of the JOA, alongside the Omani governmental approval ratified by Royal Decree 74/2022 and other relevant procedures, marks the satisfaction of all conditions precedent required for the conclusion of the assignment of Maha Energy’s 35 per cent work interest to Mafraq Energy, as provided in the relevant farmout agreement signed by the parties in August 2022.

Maha Energy and Mafraq Energy will address the post-transfer obligations moving forward. Maha is the Operator of Block 70, with 65 per cent shareholding interest.

The agreements require

Mafraq Energy to reimburse Maha Energy for their prorated share of all past costs, including the signature bonus required under the relevant agreement with the government. Mafraq Energy will also be required to pay its share of all future expenditures on Block 70.

In a press statement, Paulo Mendonça, Maha Energy’s CEO said, “We are proud to have finalised yet another major milestone in what is to be a great partnership. Maha is moving forward to commence the testing aiming for fast production of Block 70 and having Mafraq Energy as its local partner with competent and experienced Omani team, bringing knowledge of the local market to the operations.”

Talal al Subhi, director of Mafraq Energy, said, ‘This partnership is a true embodiment of enhancing the In-country Value content of Block 70. The focus now is to collaborate to kick off the production testing stage.”