Oman awards three exploration blocks to OQEP

MUSCAT: The Sultanate of Oman has signed three petroleum concession agreements with OQ Exploration and Production covering Blocks 36, 43A and 66, committing the state-owned company to exploration programmes valued at a minimum of $56 million.
The agreements are intended to expand hydrocarbon exploration, develop oil and gas reserves and support the sustainability of production and energy supplies.
They were signed by Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, on behalf of the government, and Eng Mahmoud bin Abdullah al Hashmi, Chief Executive Officer of OQ Exploration and Production, on behalf of the company.
OQEP will hold a 100-per-cent interest in the three concession areas and assume full responsibility for their operation and management.
The agreements provide for an initial three-year exploration period that can be extended for another three years. If commercial discoveries are declared, production concessions could be granted for up to 25 years.
The three blocks cover more than 30,000 square kilometres. Exploration programmes will include geological and geophysical surveys, specialised studies and the drilling of exploration wells.
Block 36, in southwestern Oman, covers about 18,557 square kilometres and has shown signs of hydrocarbons during previous exploration campaigns, although it is located some distance from major oil and gas pipeline networks.
Its work programme carries a minimum commitment of $20 million and will focus on exploration, appraisal and testing the area’s hydrocarbon potential.
Block 43A, in northwestern Oman, covers about 6,920 square kilometres. Preliminary data have indicated prospects that warrant further exploration and appraisal.
OQEP will spend at least $20 million on surveys, specialised studies and exploration drilling in the block.
Block 66 covers about 4,898 square kilometres in west-central Oman and represents an extension of geological formations discovered and developed in neighbouring areas. It also forms part of exploration activity in the Rub Al Khali salt basin.
Its minimum work commitment is $16 million, covering further geological assessment and the drilling of exploration wells.
Al Aufi said the agreements would support Oman’s plans to expand exploration and develop oil and gas reserves, strengthening production sustainability and energy security.
Awarding the blocks to OQEP reflected confidence in the national company’s operating capabilities and experience, he said.
The exploration programmes will use geophysical surveying, data analysis and geological modelling technologies to improve exploration efficiency and resource assessment.
Al Aufi said the agreements could generate economic activity beyond the addition of new reserves by stimulating demand for drilling, engineering, technical and logistics services.
They are also expected to create opportunities for Omani companies, strengthen domestic supply chains, increase In-Country Value and support the development of national talent.
Al Hashmi said the agreements represented an important step in OQEP’s growth and portfolio expansion and would strengthen the company’s presence in Oman’s exploration and production sector.
The company would use its technical capabilities and national expertise to support the sustainability of the sector and generate long-term value for Oman, he added. — ONA