Genel Energy has announced the signing of agreements that will see Genel enter into Block 54 Exploration and Production Sharing Agreement in the Sultanate of Oman for a 40% participating interest, in partnering with OQ Exploration & Production SAOG ('OQEP'), who will hold a 60% participating interest and operatorship of the licence.
Block 54 (the 'Karawan Concession') is located onshore Oman on the eastern side of South Oman Salt Basin and immediately adjacent to existing production. The block covers an area of 5,632km2 within the Al Wusta Governorate approximately 600 km south of Muscat and is largely underexplored.
Over the next three years, Genel and OQEP expect to invest approx. $25 million gross in direct costs over the Initial Phase (3 years) of the EPSA, to undertake the minimum work obligation that involves testing accessible existing wells, drilling and 3D seismic acquisition. Genel will provide a partial carry of OQEP’s 60% participating interest during the Initial Phase.
OQEP is Oman’s third largest producer and is publicly listed on the Muscat Stock Exchange, having recently completed a successful Initial Public Offering, and is a subsidiary of OQ SAOC, the state owned global integrated energy group.
Paul Weir, Chief Executive of Genel, said:
'We identified Oman some time ago as a preferred jurisdiction for geographical diversification, given its stable regulatory environment and the significant steps it has taken in recent years to set its oil and gas sector up for an exciting future. It is therefore the ideal country for Genel to begin its strategic diversification, expand its portfolio and invest capital. We are delighted to be partnering with OQEP and the Ministry of Energy and Minerals of the Sultanate of Oman on this exciting opportunity and look forward to working together to unlock and expand this contingent resource.'
Source: Genel Energy
