Muscat, The Ministry of Oil and Gas today
signed two new Exploration and Production Sharing Agreement (EPSA)
en route for having the rights to explore and develop the concession
block (51), which is between the Governorate of North A’Sharqiyah and
the Governorate of A’Dakhiliyah, and the concession block (65) in the
Governorate of A’Dhahirah.
The agreements were signed in Muscat on behalf of the
Government of the Sultanate of Oman by Dr. Mohammed bin Hamad
al-Rumhy, Minister of Oil and Gas.
The first agreement was signed with Occidental Oman for the
concession block- 51, which occupies an area of 10133 km2. The
agreement was signed on behalf of the company by Steve Kelly,
President, General Manager at Occidental Oman.
The second agreement was signed with Occidental Oman and
Oman Oil Company Exploration and Production as joint venturing for
the concession block- 65, which occupies an area of 1230 km2. The
agreement was signed on behalf of the companies by the President,
General Manager at Occidental Oman, and John Malcolm, Executive
Managing Director of Oman Oil Company Exploration and Production.
The commitments of the companies under the agreements are
obtaining geological and geophysical studies, 2D and 3D seismic
acquisition and drilling wells during exploration periods.
The Ministry of Oil and Gas wishes that the companies’ efforts
will be crowned with success in discovering hydrocarbons, which will
increase the reserves and the production rates in the country.
Dr. Salman bin Mohammed al-Shihi, Director General of
Petroleum Investments at the Ministry of Oil and Gas said that the
agreement in the concession block (65) in the Governorate of
A’Dhahirah shall require the company to invest USD 32 million in the
block to conduct seismic surveys and drilling 9 wells on two stages; the
first stage for a period of 3 years whereas the second stage for another
period of 3 years by drilling another 5 wells by Occidental Oman, and
Oman Oil Company Exploration and Production, in addition to investing
an additional USD 12 million.
Dr. al-Shihi added in statements to journalists that in the
concession block (51), which is between the Governorate of North
A’Sharqiyah and the Governorate of A’Dakhiliyah, Occidental Oman
shall invest about USD 14 million in the block through two states; each
of them for a period of 3 years. He pointed out that during the first
stage, the company shall conduct seismic surveys and drill 3 wells
whereas during the second stage, the company shall conduct seismic
surveys and drill 2 wells.
He explained that the concession block (65) has potential oil
discoveries while the block (51) has potential gas discoveries.
Dr. al-Shihi also pointed out that concession rights agreement
will be signed in another block during January 2019, in addition to
offering new blocks for exploration during 2019.
Source: Oman News Agency