Oman’s Petrogras E&P expands global presence
Petrogas E&P LLC, the oil and gas exploration and production arm of Omani owned business conglomerate MB Holding Group, has made significant inroads into the African and European energy markets over the past couple of years through investments and farm-ins that also have helped underscore the Sultanate’s world-class upstream capabilities.
At the same time, the Muscat-based firm has expanded its portfolio of activities in the Sultanate, having acquired the Kahil exploration block (Block 55) via its wholly owned subsidiary Petrogas Kahil LLC. Operations in the Sultanate are currently centred on Block 5 where it owns a 50 per cent interest via Daleel Petroleum LLC, a joint venture between Mezoon Petrogas SAOC (subsidiary of MB Holding) and Mezoon Petrogas BVI (subsidiary of China National Petroleum Corporation).
Daleel Petroleum achieved a production of 48,787 barrels per day (bpd) in 2016, surpassing its target of 48,500 bpd for the year. LPG production was boosted as well to 80 tonnes per day from its Block 5 operations. Aside from Block 5, Petrogas also holds a 75 per cent interest in the Rima Small Fields Satellite Cluster service agreement.
In recent years, Petrogas has dramatically ramped up its international presence in line with its aggressive growth strategy. In 2014, the company farmed into the DNO operated block SL018 offshore Somaliland with a 40 per cent working interest. A year later, Petrogas signed a deal with South African energy firm Sasol to farm-in into their operated Area-A Block onshore Mozambique. Elsewhere in Africa, Petrogas holds a 30 per cent interest in a service agreement in Egypt.
Making a significant foray into Europe, Petrogas has also acquired a number of oil and gas producing North Sea fields offshore the Netherlands through the acquisition of 100 per cent of US energy firm Chevron’s interest in the licenses.
Gross production from its operations in the Netherlands and Egypt, besides the Sultanate, amounted to around 89,000 barrels of oil per day (bopd) in 2016, of which Petrogas’ share was 43,000 bopd, the company stated in a report of its 2016 activities.