Oman and Swedish company Tethys Oil have signed an exploration and production sharing agreement (EPSA) or Block 58 onshore Oman
The block is located in the southern part of the sultanate adjacent to the Block 49 exploration license operated by Tethys Oil. Tethys Oil will be the block’s operator through its wholly-owned subsidiary Tethys Oil Qatbeet Limited and hold a 100 per cent license interest.
The EPSA was signed by Oman’s minister of oil and gas Mohammed bin Hamad Al Rumhi and Tethys Oil’s executive director of foreign and corporate affairs, Hussain bin Ahmed Al Lawati.
Block 58 is located in the southern part of Oman, in the Dhofar Governorate, covering an area of 4,557 sq km. Block 58 straddles the South Oman Salt Basin west flank and the Western Deformation Front.
Tethys Oil has been provided with a total of 7,600 km of 2D seismic and 1,100 sq km of 3D seismic data acquired by previous operators, as well as raw logs and well reports from two wells drilled inside the block boundaries. Both wells showed the presence of hydrocarbon, the company said.
Multiple play concepts, including plays familiar to Tethys, are believed to exist within the block boundaries, with several leads identified.
The EPSA for Block 58 covers an initial three-year exploration period with an optional further three-year extension period. The EPSA will be transformed into a 15-year production license in case of a commercial oil or gas discovery that can be extended for another five years.
In the event of a commercial discovery, an Oman Government Company is entitled to acquire up to 30 per cent interest in Block 58 against reimbursement of past expenses. During the first period, initial work commitments include a 3D seismic campaign and drilling of two exploration wells.
“The signing of this EPSA represents another step in Tethys Oil’s strategy in Oman. I would like to take this opportunity to express our sincere thanks to the government of Oman for this exciting opportunity,” said Tethys managing director Magnus Nordin.