Muscat – Swedish energy firm Maha Energy on Friday announced that it has been granted by Oman’s Ministry of Energy and Minerals an extension of the initial phase of the exploration and production sharing agreement (EPSA) for the onshore Block 70.

After the extension, the initial phase of the EPSA runs until December 31, 2023, Maha Energy said in a statement.

Maha Energy commenced in March 2023 a production test on Block 70. Driven by its commitment to effectively conclude the production testing, the company requested to the Ministry of Energy and Minerals in July 2023 for an extension of the initial phase of the exploration and production sharing agreement.

‘During the extended initial phase, Maha Energy intends to implement activities and tests necessary to support any decision regarding a second phase of the EPSA, a possible declaration of commerciality of Block 70 or relinquishment,’ the company noted in its statement.

Maha Energy is the operator of Block 70 with a 65% working interest, with Mafraq Energy holding the remaining 35%.

During the extended initial phase, Maha Energy intends to implement activities necessary to support any decision regarding Block 70’s declaration of commerciality, such as: (i) running detailed simulations of the long-term behaviour of the reservoir and wells at Block 70; (ii) restarting the cold production of wells and troubleshooting for the maximum possible sustained rates contingent on reaching specifications; and (iii) preparing a detailed plan for enhanced oil recovery (EOR) such as steam, waterflooding, or other production enhancement methods to be performed during a possible second stage of the extended initial phase.

Block 70 is an onshore block that includes the shallow undeveloped Mafraq heavy oil field. The block is located in the middle of the prolific oil producing Ghaba Salt Basin in the central part of Oman.