Oil, Gas Ministry Signs Two New Exploration, Production Sharing Agreements

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