The Ministry of Oil and Gas signed a new Exploration and Production Sharing Agreement (EPSA) for the concession Block 58 with Tethys Oil Qatbeet Limited on Sunday.
The agreements was signed on behalf of the government of the Sultanate of Oman by H E Mohammed Hamed al Rumhy, Minister of Oil and Gas, and Hussain al Lawati, VP Corporate Affairs, Tethys Oil.
The block is located in the southern part of the sultanate adjacent to Tethys Oil’s operated exploration licence Block 49. Tethys Oil, through its wholly owned subsidiary – Tethys Oil Qatbeet Limited, will be the operator of the block and hold a 100% license interest.
The EPSA for Block 58 covers an initial exploration period of three years with an optional extension period of another three years. In case of a commercial oil or gas discovery, the EPSA will be transformed into a 15 year production license which can be extended for another five years. In case of a commercial discovery, an Oman Government Company has a right to acquire up to a 30% interest in Block 58 against refunding of past expenditure. The initial work commitments during the first period include a 3D seismic campaign and drilling of two exploration wells.
Block 58 is located in Dhofar Governorate and covers an area of 4,557sqkm. Block 58 straddles the western flank of the South Oman Salt Basin and the Western Deformation Front. A total of 7,600km of 2D seismic and 1,100sqkm of 3D seismic data acquired by previous operators has been made available to Tethys Oil as well as raw logs and well reports from two wells drilled within the block boundaries. Both wells encountered hydrocarbon shows. Multiple play concepts are believed to exist within the block boundaries, including plays familiar to Tethys, with several leads identified, Tethys Oil stated.
“We are very happy to have been given the opportunity to explore for hydrocarbons on Block 58. The signing of this EPSA represents another step in Tethys Oil’s strategy in the Sultanate of Oman. I would like to take this opportunity to express our sincere thanks to the government of the Sultanate of Oman for this exciting opportunity,” said Magnus Nordin, Tethys’ managing director.