BP, Eni join hands to pursue new exploration opportunity
Companies to work towards the award of 3,100sq km Block 77
BP and Eni will now enter discussions with the Ministry of Oil and Gas to finalise details of the EPSA for Block 77
BP and Eni on Monday signed a heads of agreement (HoA) with the Ministry of Oil and Gas to work jointly towards a significant new exploration opportunity in Oman.
Under the HoA, the two companies will work with Oman's government towards the award of a new exploration and production sharing agreement (EPSA) for Block 77 in central Oman, BP said in a press statement.
BP and Eni will now enter discussions with the Ministry of Oil and Gas to finalise details of the EPSA for Block 77.
Bernard Looney, BP's chief executive - upstream said, “This would represent a further deepening of BP’s important position in Oman, building on our successful delivery of the major Khazzan project in 2017 and its second phase of development that is currently under construction.
“We look forward to continuing to explore and efficiently develop the country’s resources, working in close partnership with Eni and Oman to underpin our commitment to delivering long-term gas production for Oman.”
Block 77, with a total area of almost 3,100sq km, is located in central Oman, 30km east of the BP-operated Block 61 which contains the already-producing Khazzan gas project as well as the Ghazeer project, which is currently under development.
BP has had an upstream presence in Oman since 2007 when it signed an exploration- and production-sharing agreement for Block 61 in central Oman.
Block 47
Eni has also entered into an exploration and production sharing agreement with Oman Oil Company Exploration and Production (OOCEP) and the Ministry of Oil and Gas for onshore Block 47, OOCEP announced through a tweet on Monday.
Located in Oman's A’Dakhiliyah Governorate, Block 47 covers an area of around 8,524sqkm. The block was awarded to Eni and OOCEP following their joint bid as part of the 2017 Oman licensing round.
Pursuant the EPSA, Eni is the operator of the block with a 90 per cent participating interest while OOCEP holds remaining 10 per cent interest.
“The signing of Block 47 EPSA and Block 77 HoA represents a further step in Eni’s strategy to reinforce its presence in Oman and strengthen the collaboration with OOCEP, which is Eni’s partner also in Block 52,” Eni said in a statement on its website.
The company said the exploration operations at the Block 47 are expected to commence later this year.
Block 77 is located in central Oman, 30km east of the BP-operated Block 61 which contains the Khazzan gas project as well as the Ghazeer project