Tethys Oil plans to in­vest up to $71mn in Oman this year

Muscat Daily - - BUSINESS - Our Cor­re­spon­dent

Swedish hy­dro­car­bons ex­plo­ration firm Tethys Oil is plan­ning to in­vest up to US$71mn this year in ex­plo­ration and pro­duc­tion ac­tiv­i­ties in Oman.

In its fi­nan­cial guid­ance for 2020, the Swedish firm an­nounced that ‘it ex­pects to­tal in­vest­ments be­tween US$64mn and US$71mn in oil and gas prop­er­ties for 2020’. The com­pany said a lion’s share of the pro­posed in­vest­ment in 2020, be­tween US$55mn and US$62mn, would be made in the sul­tanate’s Blocks 3 and 4.

Tethys Oil had ac­quired in­ter­est in the li­cence for Blocks 3 and 4 in 2007. These two blocks cover an area of 29,130sq km in the cen­tral east­ern part of Oman. The com­pany op­er­ates through its wholly owned sub­sidiary

Tethys Oil Block 3&4 Lim­ited, which owns 30 per cent in­ter­est in these blocks.

The com­pany re­vealed that the aver­age pro­duc­tion from Blocks 3 and 4 in 2019 stood be­tween 12,600 and 13,400 bar­rels per day. It es­ti­mates that the op­er­at­ing ex­penses to be at or around US$11.5 per bar­rel for 2020. ‘Based on the pro­duc­tion, in­vest­ment, and op­er­at­ing ex­pense out­look out­lined above, and an oil price as­sump­tion of US$60 per bar­rel, Tethys Oil ex­pects its en­ti­tle­ment of oil pro­duc­tion for 2020 to be be­tween 51-52 per cent.’

Be­sides Blocks 3 and 4, Tethys Oil plans to in­vest around US$9mn in boost­ing its op­er­a­tions in the Blocks 49 and 56. ‘The main ac­tiv­ity on Block 49 is to drill a first ex­plo­ration well. The Block 56 work is cen­tred on a three well test pro­gramme.’

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