Middle East nation offers promising offshore oil and gas exploration block
Oman’s Block 18 covers an estimated 21,140 square kilometres and holds ‘untapped hydrocarbon resources’
Oman is offering a new exploration block in the southern Gulf of Oman to investors, touted as one of the largest offshore blocks to be offered by the country in recent years.
Block 18 comprises ‘untapped hydrocarbon resources’ and covers an estimated 21,140 square kilometres, the nation’s Ministry of Energy & Minerals revealed in a social media post on Monday.
The acreage has been offered through a “new approach to investing in the oil and gas sector,” and as part of Oman’s efforts to attract foreign investments, said Mohsen bin Hamad Al Hadrami, an undersecretary at the ministry.
Oman’s state-owned OQ Exploration & Production will have the right to contribute 10% to the block’s exploration expenses, with the possibility of raising the contribution to 30% in the event of a transition to commercial development, according to the note from the ministry.
The block on offer aims to strengthen investment partnerships with local and international players and support the nation’s economy, it stated.
The investment procedures in the upcoming package applies a contractual system based on concession fees and allows the “establishment of integrated gas exploitation projects,” the statement added.
Offshore exploration efforts have been gaining momentum in Oman in recent months.
The Middle East-focused operator earlier said that its multiwell programme at the Yumna field in Block 50 was completed ahead of the 90-day schedule and below budget.
Masirah noted that the Yumna-5 well, which was spudded on 28 March “at the crest of the structure to drain attic oil left un-swept by the current producers,” started production on 26 April.
The drilling programme also included a workover of the Yumna-4 well in addition to the originally planned workovers of Yumna-2 and Yumna-3.
(Copyright)