Oman has executed an EPSA with OQEP and Genel Energy to enhance hydrocarbon exploration in Block 54. The agreement involves an investment of up to $25 million over three years for seismic surveys and drilling. OQEP will operate the block with a 60% interest, while Genel will contribute part of OQEP’s share. The agreements will be effective upon Royal Decree ratification.
Oman’s Ministry of Energy and Minerals has formalized an Exploration and Production Sharing Agreement (EPSA) with OQ Exploration and Production (OQEP) and Genel Energy for the development of Concession Block 54. This agreement marks a significant advancement in Oman’s strategy to boost hydrocarbon exploration and production.
Minister Salim Nasser al Aufi remarked that the EPSA represents a crucial move towards enhancing Oman’s hydrocarbon sector. He expressed confidence that this initiative will yield positive outcomes, ensuring sustained oil and gas output while contributing significantly to the nation’s economy.
The specified area of Block 54, referred to as the Karawan Concession, covers approximately 5,632 square kilometers in the Al Wusta Governorate and has been largely unexplored. The initial phase of the agreement, anticipated to span three years with investments of up to $25 million, will involve advanced 3D seismic surveys, drilling of new exploration wells, and reevaluation of existing wells.
In accordance with the EPSA, OQEP will possess a 60% operating interest in Block 54, while Genel Energy will hold the remaining 40% as a non-operating partner. Genel Energy will also cover part of OQEP’s interest during the initial phase to facilitate operations.
To optimize their collaboration, both companies have established a Joint Operating Agreement (JOA) for Block 54. These agreements will activate following a Royal Decree confirming the EPSA’s ratification.
The signing of the EPSA between Oman’s Ministry of Energy and Minerals, OQEP, and Genel Energy showcases a strategic move to enhance hydrocarbon exploration and production in Block 54. With the significant investment and commitment from both companies, this initiative is projected to bolster Oman’s economy and sustain its oil and gas outputs in the coming years.
Original Source: egyptoil-gas.com
