Oman has entered into an EPSA with OQEP and Genel Energy to develop Block 54, aiming to enhance hydrocarbon exploration. The agreement involves investments up to $25 million for advanced surveys and well evaluations over three years. OQEP will hold a 60% operating interest while Genel retains 40%. A Joint Operating Agreement has been established and awaits ratification by a Royal Decree.
Oman’s Ministry of Energy and Minerals has officially executed an Exploration and Production Sharing Agreement (EPSA) with OQ Exploration and Production (OQEP) and Genel Energy, aimed at advancing the development of Concession Block 54 in Oman. This agreement marks a significant milestone in the country’s ambition to enhance hydrocarbon exploration and development.
Salim Nasser al Aufi, the Minister of Energy and Minerals, expressed confidence in the agreement, highlighting its potential to yield substantial outcomes. He emphasized that it would sustain oil and gas production while contributing significantly to the national economy.
The Karawan Concession, designated as Block 54, covers an area of 5,632 square kilometers within the underexplored Al Wusta Governorate. The initial phase of the partnership will span three years, entailing investments up to $25 million. This phase includes executing advanced 3D seismic surveys, drilling new exploration wells, and reassessing existing wells.
The EPSA stipulates that OQEP will manage a 60% operating interest in Block 54, with Genel Energy holding the remaining 40% as a non-operating partner. Additionally, Genel has committed to a partial carry of OQEP’s interest during the initial phase of the project.
Both OQEP and Genel have established a Joint Operating Agreement (JOA) to facilitate operations within Block 54. The implementation of these agreements is contingent upon the issuance of a Royal Decree that ratifies the EPSA.
The signing of the EPSA between Oman’s Ministry of Energy and Minerals, OQEP, and Genel Energy constitutes a pivotal advancement in hydrocarbon exploration within Block 54. The collaboration is expected to enhance oil and gas production, benefiting the national economy and optimizing resource utilization through advanced technologies and strategic investments. The formation of a Joint Operating Agreement emphasizes the commitment to operational efficiency moving forward.
Original Source: egyptoil-gas.com
