Oman has awarded the exploration and development rights for the concession Block 70 to the Swedish oil exploration and production company Maha Energy.
The Ministry of Energy and Minerals on Monday signed a new exploration and production sharing agreement (EPSA) with Swedish Maha Energy (Oman) Limited, a wholly-owned subsidiary of Maha Energy. The agreement was signed in Muscat by H E MoahmmedHamed al Rumhi, Minister of Energy and Minerals, and TalalSaif al Subhi, representative of Maha Energy in Oman, according to a statement issued by the Ministry of Energy and Minerals.
The commitment of the Swedish company under the agreement is obtaining geological and geophysical studies, reprocess 3D seismic and drill appraisal and pilot wells to evaluate and produce the heavy oil in Mafraq field in Block 70.
‘The Ministry of Energy and Minerals wishes that the company’s efforts will be crowned with success in discovering hydrocarbons which will increase the reserves and the production rates in the country,’ the ministry’s statement said.
The Block 70, which occupies an overall area of 639 sq km, is an onshore block in Oman that includes the shallow undeveloped Mafraq heavy oil field. The block is located in the middle of the prolific and oil-producing Ghaba Salt Basin in the central part of the sultanate.
In a recently issued press statement, Jonas Lindvall, president and CEO of Maha Energy, said, “To be allowed an opportunity to explore and develop the Mafraq oil field is an exceptional opportunity to add value to Maha Energy and the people of Oman. The Mafraq oil field contains significant amounts of oil and previous and extensive pump tests has proven the productivity of the field.”
According to Maha Energy’s statement, the Mafraq oil field was discovered by Petroleum Development Oman (PDO) in 1988 and was further delineated by four wells and 3D seismic in stages until 2010. Two wells were placed on pump production tests, of which one was placed on an extended test in order to prove long-term productivity.
Maha Energy said that the Mafraq field is estimated by third parties to contain between 185mn–280mn barrels of original oil in place. The productive reservoir is shallow, at approximately 430m below the ground level.
The company added that the Block 70 is covered by both 2D and 3D seismic data that has been acquired by previous operators and has been made available to Maha Energy.
Maha Energy operates four oil fields globally: Tartaruga and Tie in Brazil, Powder River (LAK Ranch) and Illinois basins in the United States.