EOG Resources is taking a 50% stake in a large onshore block in Oman after agreeing a farm-in deal with Swedish player Tethys Oil.


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The deal will see EOG gain access to 2D and 3D seismic as well as nine existing wells on Block 49 in the south-west of the sultanate.

EOG will also fund the upcoming Thameen-1 exploration well, with the total cost of its entry coming to $15 million.

The US independent will also have the option to move to an 85% stake and take operatorship if any operations move into unconventionals.

Tethys will remain as operator through drilling of the Thameen-1 wildcat and would retain a 15% stake if EOG were to move to the higher share.

The well is set to spud in mid-December and will be drilled to a depth of nearly 4000 metres to evaluate three potential reservoir targets.