MUSCAT, MARCH 18
Swedish upstream oil and gas company Maha Energy (Maha) has announced that it has commenced production testing on Block 70 in Oman. The production test will include all eight new production wells drilled in the 2022/2023 drilling programme.
The production test will start with the Mafraq-9 well. Biweekly, a new well will be added to the test until all new wells are connected to the testing system. Each well will be completed with PCP pumps before being placed on the test.
Produced oil will be transported by heated trucks to a third party’s facilities for further processing and, afterwards, transportation through the Omani national pipeline system. Maha expects to be able to announce preliminary information about the quality of the oil and initial production potential by May 2023.
In January this year, Maha Energy and Mafraq Energy entered into a Joint Operating Agreement (JOA) for Block 70 in Oman. Through the JOA, Mafraq Energy acquired 35% interest in the exploration and production sharing agreement covering Block 70. Maha is the Operator of Block 70 with 65% interest.
The JOA require Mafraq Energy to reimburse Maha for their prorated share of all past costs, including the signature bonus required under the relevant agreement with the government. Mafraq Energy is also required to pay its share of all future expenditures on Block 70.