Oxy welcomes OOCEP’s 45 per cent interest in Oman Block 9

US-based international oil and gas producer Occidental Petroleum Corporation (Oxy) says it is optimistic about growth prospects across its substantial operations in the Sultanate, most notably in Block 9 where state-owned Oman Oil Company Exploration & Production (OOCEP) recently acquired a 45 per cent participating interest.

Block 9, also known as the Suneinah block in north Oman, is a key source of hydrocarbons where output from the Safah and Wadi Latham fields averaged around 100,000 barrels of oil equivalent per day (boepd) in 2015.

Under a revised Exploration & Production Sharing Agreement (EPSA) signed in Muscat last month, OOCEP — the upstream energy arm of wholly government owned investment vehicle Oman Oil Company — acquired a 45 per cent participating interest in the Oxy-operated block. Oman’s Oil & Gas Minister Dr Mohammed bin Hamad al Rumhy, inked the agreement on behalf of the government, while OOCEP was represented by Eng Isam al Zadjaly, CEO of Oman Oil Company. Mitsui E&P is also a partner in the block.

In remarks to analysts over the weekend, Ken Dillon, President of International Operations at Occidental Petroleum Corporation, described the new Block 9 contract as promising. “That’s a 15-year contract where we see substantial growth opportunities, both in oil and gas and in exploration. We think there are other opportunities in Oman that are a good fit long-term for us. So overall very positive,” he said.

Over the 30 years of its operations in the Sultanate, Oxy Oman has emerged as the largest independent oil producer with a black oil contribution averaging 233,000 barrels per day