Oman has signed an EPSA with OQEP and Genel Energy to develop Concession Block 54, supporting hydrocarbon exploration. The agreement entails significant investments, joint operational efforts, and aims to enhance national oil and gas production and economic contributions.
The Ministry of Energy and Minerals in Oman has successfully signed an Exploration and Production Sharing Agreement (EPSA) with OQ Exploration and Production (OQEP) and Genel Energy for the advancement of Concession Block 54. This agreement marks a crucial progression in Oman’s strategy aimed at refining hydrocarbon exploration and its associated development.
Salim Nasser al Aufi, Oman’s Minister of Energy and Minerals, emphasized the significance of this accord, stating that it would yield substantial results in sustaining oil and gas outputs and significantly bolster the national economy.
Block 54, also referred to as the Karawan Concession, covers an area of 5,632 square kilometers within the Al Wusta Governorate and has not been extensively explored. The initial phase, projected to last for three years and involve investments of up to $25 million, will encompass advanced 3D seismic surveys, the drilling of new exploration wells, and re-evaluation of existing wells.
In terms of operational interests, OQEP will control a 60% stake in Block 54, while Genel Energy will hold the remaining 40% as a non-operating partner. Genel Energy has also committed to support OQEP’s 60% participation in this initial phase.
Furthermore, both organizations have established a Joint Operating Agreement (JOA) to facilitate streamlined operations within Block 54. The arrangements will take effect following the issuance of a Royal Decree to ratify the EPSA.
In conclusion, Oman’s recent EPSA signing with OQEP and Genel Energy signifies a vital enhancement in hydrocarbon exploration efforts in Block 54. The commitment to invest in advanced exploration techniques and operational collaboration aims to ensure sustained productivity and economic contributions from the oil and gas sector. The planned cooperative measures will bring fresh opportunities for growth in this underexplored region of Oman.
Original Source: egyptoil-gas.com
