Oman’s Ministry of Energy and Minerals has signed an EPSA with OQEP and Genel Energy for the development of Block 54. This agreement aims to enhance hydrocarbon production through advanced exploration efforts. The initial phase involves an investment of up to $25 million and includes seismic surveys and well evaluations, with OQEP holding a 60% operational interest while Genel Energy retains 40%.
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. This agreement aims to facilitate the development of Concession Block 54 in Oman, an area poised to enhance hydrocarbon exploration and production.
Salim Nasser al Aufi, Oman’s Minister of Energy and Minerals, emphasized the significance of this agreement as a critical step toward increasing hydrocarbon exploration efforts. He affirmed, “We are confident that this agreement will deliver tangible outcomes, sustaining oil and gas production and making a significant contribution to the national economy.”
Block 54, also referred to as the Karawan Concession, encompasses an area of 5,632 square kilometers located in the Al Wusta Governorate, which currently remains underexplored. The agreement specifies an initial phase lasting three years with an investment of up to $25 million, focusing on conducting advanced 3D seismic surveys, drilling new exploration wells, and re-evaluating existing wells.
According to the terms of the EPSA, OQEP will possess a 60% operational stake in Block 54, while Genel Energy will hold the remaining 40% as a non-operating partner. Genel has indicated it will offer a partial carry for OQEP’s 60% participating interest during the initial phase of this project.
Furthermore, both companies have completed a Joint Operating Agreement (JOA) to facilitate cooperative endeavors within Block 54. These agreements will become effective following the issuance of a Royal Decree that ratifies the EPSA.
In conclusion, the EPSA signed between Oman’s Ministry of Energy and Minerals, OQEP, and Genel Energy is set to advance hydrocarbon exploration and production in Block 54. With significant investments planned and a structured operational agreement in place, this initiative is poised to enhance Oman’s energy sector while contributing positively to the national economy.
Original Source: egyptoil-gas.com
