Oman Signs EPSA with OQEP and Genel Energy to Advance Hydrocarbon Development in Block 54

Oman has signed an EPSA with OQEP and Genel Energy for the development of Block 54, aiming to enhance hydrocarbon exploration and development in the region. The initial phase will include substantial investments and advanced seismic surveys, with OQEP holding a 60% interest and Genel Energy 40%.

The Ministry of Energy and Minerals in Oman has established an Exploration and Production Sharing Agreement (EPSA) with OQ Exploration and Production (OQEP) and Genel Energy for the development of Concession Block 54. This partnership emphasizes Oman’s strategic commitment to advancing hydrocarbon exploration.

Salim Nasser al Aufi, Oman’s Minister of Energy and Minerals, remarked that this agreement signifies a significant milestone in enhancing hydrocarbon exploration and development. He expressed confidence that the collaboration would yield substantial benefits, sustaining oil and gas production while contributing positively to the national economy.

Block 54, or the Karawan Concession, covers 5,632 square kilometers in the Al Wusta Governorate and remains largely unexplored. The initial three-year phase of the EPSA will see investments of up to $25 million, focusing on conducting advanced 3D seismic surveys, drilling new exploration wells, and reassessing existing wells.

According to the agreement, OQEP will maintain a 60% operating interest in Block 54, with Genel Energy holding the remaining 40% as a non-operating partner. Genel Energy intends to provide a partial carry of OQEP’s interest during the initial phase of operations.

Additionally, both companies have formed a Joint Operating Agreement (JOA) to facilitate effective collaboration within Block 54. The agreements will become effective once a Royal Decree ratifying the EPSA is issued.

The signing of the EPSA between Oman’s Ministry of Energy and Minerals, OQEP, and Genel Energy marks a significant step in enhancing hydrocarbon exploration in the underexplored Block 54. With a proposed investment of up to $25 million and a structured partnership, this initiative is poised to contribute positively to Oman’s national economy through sustainable oil and gas production.

Original Source: egyptoil-gas.com