The sultanate’s Ministry of Energy and Minerals signed an exploration and production sharing agreement (EPSA) with the leading US energy company EOG Resources to explore for oil in Block 36 onshore Oman.
The Block 36 is being acquired by EOG in a transaction with Apex Oman (Block 36) Inc and encompasses 4.6mn acres of the Rub Al Khali Basin located in the southwest area of the sultanate. In partnership with the Ministry of Energy and Minerals, EOG plans to drill a minimum of two wells to explore oil resource targets by mid-2022.
The agreement was signed by H E Dr Mohammed bin Hamad al Rumhi, Minister of Energy and Minerals and William R Bill Thomas, chairman and chief executive officer of EOG Resources, on Wednesday, according to a press statement issued by the ministry.
“This agreement represents the next step for Oman to determine the resource potential of the Rub Al Khali Basin. We are pleased to be partnered with EOG Resources, the industry leader of horizontal oil and natural gas exploration and technology, to assess the technical and economic potential of the region,” H E Rumhi said.
Thomas said, “We are pleased with the opportunity to evaluate this oil-rich basin for potential horizontal development. We look forward to working alongside the Ministry of Energy and Minerals to expand Oman’s oil resource potential.”
EOG Resources is one of the largest crude oil and natural gas exploration and production companies in the US with proved reserves in the United States, Trinidad, and China.