Oman’s Ministry of Energy and Minerals signed an EPSA with OQEP and Genel Energy to develop Concession Block 54. The agreement aims to enhance hydrocarbon exploration with an initial investment of $25 million over three years, encompassing seismic surveys and drilling. OQEP will have a 60% operating interest, while Genel Energy will hold 40% as a non-operating partner.
Oman’s Ministry of Energy and Minerals has entered into an Exploration and Production Sharing Agreement (EPSA) with OQ Exploration and Production (OQEP) and Genel Energy for the development of Concession Block 54, which is located in Oman. This agreement marks an essential advancement in Oman’s initiative to bolster hydrocarbon exploration and development.
Salim Nasser al Aufi, Oman’s Minister of Energy and Minerals, emphasized that the signed agreement is expected to yield significant results, contributing to sustainable oil and gas production and the overall growth of the national economy.
Block 54, referred to as the Karawan Concession, covers an area of approximately 5,632 square kilometers in the underexplored Al Wusta Governorate. The initial three-year phase of the agreement involves investments reaching up to $25 million, focusing on implementing advanced 3D seismic surveys, drilling new exploration wells, and re-evaluating current wells.
Within the EPSA framework, OQEP will maintain a 60% operating interest in Block 54, while Genel Energy will hold the remaining 40% as a non-operating partner. Genel Energy also announced its commitment to provide a partial carry for OQEP’s interest during the initial phase of operations.
Furthermore, both entities have established a Joint Operating Agreement (JOA) to enhance operational efficiency within Block 54. These agreements will become active following the issuance of a Royal Decree ratifying the EPSA.
The recent EPSA signed between Oman’s Ministry of Energy and Minerals, OQEP, and Genel Energy signifies a crucial development in Oman’s hydrocarbon sector. With an investment of up to $25 million over three years, the collaboration aims to explore and develop the underutilized Block 54, fostering sustainable oil and gas production and contributing to the economy.
Original Source: egyptoil-gas.com
