Oman inks EPSA for Block 5

An Exploration & Production Sharing Agreement (EPSA) for the onshore Block 5 licence in northwestern Oman was signed here yesterday between the Omani government and Daleel Petroleum, jointly owned by Mazoon Petrogas BVIA Limited and Mazoon Petrogas SAOC.

Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, signed the pact on behalf of the government. Dr Mohammed al Barwani, Chairman of MB Holding — the parent company of Daleel Petroleum — signed on behalf of the latter, which will be responsible for all hydrocarbon activities within the Block.

Block 5, a producing concession, came into operation in 1981 for the first time, with Daleel acquiring the licence in 1991. A 40-year EPSA covering the operation of the Block has since come to an end. Yesterday’s EPSA, although a new agreement, will remain in effect for 15 years.

In comments to journalists, Saif bin Hamad al Salmani, Director General of Oil and Gas Exploration and Production at the Ministry, said: “This agreement stems from negotiations between Mohammed Al Barwani Group and its Chinese partners to enhance some provisions of the previous EPSA pact. The operator will drill at least three deep exploration wells for the first time in the Block.”