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