Oman’s Ministry of Energy and Minerals has signed an EPSA with OQEP and Genel Energy for developing Block 54. This agreement, crucial for enhancing hydrocarbon exploration, involves substantial investment and collaboration. OQEP will operate the block with a 60% stake, while Genel retains 40%. A Joint Operating Agreement (JOA) will streamline operations pending Royal Decree ratification.
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 will facilitate the development of Concession Block 54 in Oman, which is essential for enhancing hydrocarbon exploration efforts.
Salim Nasser al Aufi, Oman’s Minister of Energy and Minerals, emphasized the significance of this agreement, noting that it is a crucial step towards improving hydrocarbon exploration and production. He expressed confidence that the project will yield substantial benefits for the national economy.
The agreement pertains to Block 54, known as the Karawan Concession, which covers 5,632 square kilometers in the underexplored Al Wusta Governorate. The initial phase, lasting three years and involving an investment of up to $25 million, will focus on advanced 3D seismic surveys, drilling new exploration wells, and re-evaluating existing wells.
In terms of stakes, OQEP will manage the block with a 60% operating interest, while Genel Energy will retain 40% as a non-operating partner. Additionally, Genel will partially finance OQEP’s interest during the initial phase.
Both OQEP and Genel have agreed to a Joint Operating Agreement (JOA) to coordinate operations effectively within Block 54. The agreements will take effect upon the signing of a Royal Decree that ratifies the EPSA.
The signed EPSA between Oman’s Ministry of Energy, OQEP, and Genel Energy is a significant milestone for hydrocarbon exploration in Block 54. With a focus on innovative seismic surveys and drilling, this partnership aims to sustainably boost oil and gas production, benefiting Oman’s economy. The collaboration, formalized through a JOA, marks an important development in underexplored regions, promising extensive exploration efforts in the coming years.
Original Source: egyptoil-gas.com
