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Oman plans to award one more oil block this year

Business Saturday 30/January/2016 18:37 PM
By: Times News Service
Oman plans to award one more oil block this year

Muscat: The Oman government is planning to award one more oil block to an international oil company on a production sharing basis in the Al Wusta region this year, said a senior official from the Ministry of Oil and Gas.
“Hopefully, one more will be coming soon. We are in an advanced stage (to award the concession). This is an onshore block,” Dr. Saleh Al Anboori, director general of Management of Petroleum Investments at the Ministry of Oil and Gas, told journalists, after signing a concession agreement for block seven with Hydrocarbon Finder.
The Oman government on Thursday had signed an oil concession agreement with Hydrocarbon Finder to take over an existing block on a production sharing basis.
As per the agreement, Hydrocarbon Finder, a 100 per cent locally-owned independent oil producer, will take over block seven from Petrogas for producing oil from the concession area.
The concession area has a large area spanning around 2,331 kilometres in the Al Wusta region.
“This is an existing field. The new company will ramp up production. It will drill more horizontal wells, which will depend on the field development plan. They will also foresee production being ramped up to 5,000 barrels per day,” Al Anboori added.
The commitments of the company under this agreement include a reinterpretation of the existing data, acquiring 3D seismic surveys, conducting studies, providing operational support and drilling several development and exploration wells.
The agreement was signed by Dr. Mohammed bin Hamed Al Rumhy, minister of oil and gas, and Suleiman Mohammed Yahya Al Adawi, chairman of Hydrocarbon Finder.
The agreement is for a period of 15 years and the company will finalise the field development plan in the initial three years. “The potential is high and the company will relook to revamp production.”