Oman Signs EPSA with OQEP and Genel Energy to Expand Hydrocarbon Exploration in Block 54
Oman has signed an EPSA with OQEP and Genel Energy for Block 54 to bolster hydrocarbon exploration. This $25 million investment will support seismic surveys and drilling activities, with OQEP holding a 60% interest and Genel Energy a 40% interest. The project is crucial for Oman’s energy sector and economy.
The Ministry of Energy and Minerals of Oman has officially signed an Exploration and Production Sharing Agreement (EPSA) with OQ Exploration and Production (OQEP) and Genel Energy. This agreement aims to enhance hydrocarbon exploration and development in Concession Block 54, a strategic initiative for Oman’s energy sector.
Oman’s Minister of Energy and Minerals, Salim Nasser al Aufi, emphasized that the agreement marks a significant advancement in Oman’s hydrocarbon endeavors. He expressed confidence that this partnership will yield substantial outcomes, promoting sustained oil and gas production and contributing positively to the national economy.
Block 54, commonly known as the Karawan Concession, covers an area of 5,632 square kilometers in the Al Wusta Governorate and remains largely underexplored. The agreement’s initial phase will be implemented over three years and could involve investments of up to $25 million, which includes advanced 3D seismic surveys, the drilling of exploration wells, and the assessment of existing wells.
Within the agreement, OQEP will hold a 60% operating interest in Block 54, while Genel Energy will maintain 40% as a non-operating partner. Furthermore, Genel will assist by partially covering OQEP’s 60% interest costs during the initial phase of exploration.
Both companies have established a Joint Operating Agreement (JOA) to facilitate operations within Block 54. The agreements will commence upon the issuance of a Royal Decree to ratify the EPSA.
In conclusion, the signing of the EPSA between Oman, OQEP, and Genel Energy represents a crucial development in enhancing hydrocarbon exploration within Block 54. With a focus on extensive investment in exploration and development, this initiative is expected to significantly impact both the energy sector and Oman’s economy. The collaboration aims to leverage technological advancements to optimize hydrocarbon production in the region.
Original Source: egyptoil-gas.com
