Omani, Thai oil firms to explore upstream pact

MUSCAT, JUNE 1
PTT Exploration and Production Public Company Limited (PTTEP), Thailand’s national oil and gas exploration and production company, has announced a new partnership with OQ Exploration & Production (OQEP), the upstream arm of Oman’s integrated energy group OQ, aimed at exploring cooperation opportunities in the upstream energy sector both in their respective countries and internationally.
A Memorandum of Understanding (MoU) to this effect was signed recently in Muscat by Montri Rawanchaikul, Chief Executive Officer of PTTEP and Mahmoud al Hashmi, Chief Executive Officer of OQ Exploration and Production New Ventures LLC (OQEP).
“The MoU covers the exchange of technical expertise, experience and best practices, together with initiatives in human capital development, integrated digital solutions and continuous improvement for upstream operations”, PTTEP said in a statement.
“This collaboration reflects the shared commitment between PTTEP and OQEP to strengthening strategic partnerships and enhancing organisational capabilities for long-term growth in the energy sector”, the Thai company added.
The agreement reflects a broader strategy by the two national energy companies to deepen partnerships with international energy firms and expand their upstream footprint. OQEP already works alongside PTTEP in Oman through existing joint ventures, including the giant Block 61 gas concession, where OQEP holds a 30 per cent stake and PTTEP a 20 per cent stake, alongside BP and PETRONAS.
PTTEP also owns a 2 per cent participating interest in Block 6 — Oman’s largest producing onshore oil asset — operated by Petroleum Development Oman (PDO). Elsewhere in southern Oman, PTTEP Group holds a 1 per cent participating interest in Block 53, home to the heavy oil-bearing Mukhaizna field, which is operated by Occidental Petroleum.
On the midstream front, PTTEP holds a 2 per cent interest in Oman LNG and an indirect 0.7 per cent interest in Qalhat LNG, which together have a combined production capacity of 11.4 million tonnes per annum.
The latest MoU with PTTEP is also part of a wider international partnership drive pursued by OQEP in recent years. Last October, OQEP, through OQ Exploration and Production New Ventures LLC, signed an MoU with Petronas subsidiary Petronas Carigali International Ventures (PCIV) to jointly pursue upstream oil and gas opportunities in the Middle East and Southeast Asia. This was followed by the signing of a Joint Operating Agreement and concession agreement for offshore Block 18 in northeast Oman, in which Petronas holds a 70 per cent operating stake and OQEP retains the remaining 30 per cent.
Earlier in July, OQEP entered into a tripartite exclusivity agreement with Oman’s Ministry of Energy and Minerals and Turkish Petroleum Corporation (TPAO) to assess selected oil and gas blocks in Oman.
Additionally, OQEP signed an Exploration and Production Sharing Agreement (EPSA) with UK-based Genel Energy and the Ministry of Energy and Minerals for the development of Concession Area 54 (Karawan Concession) in Al Wusta Governorate. Under the agreement, OQEP holds a 60 per cent operating interest, while Genel Energy retains the remaining 40 per cent.