Oman's oil and gas ministry has signed an exploration and production sharing agreement with Sweden's Tethys Oil for the Block 58 concession. The agreement covers an initial three-year exploration period, with the option to extend.
“We are very happy to have been given the opportunity to explore for hydrocarbons on Block 58. The signing of this EPSA represents another step in Tethys Oil’s strategy in sultanate of Oman,” said Magnus Nordin, managing director of Tethys Oil.
The company received 7,600 kilometres of 2D seismic data, and 1,100 square kilometers of 3D seismic data from previous operators. If Tethys discovers commercial quantities of hydrocarbons, the EPSA covers a 15-year production license, which can be extended by five years.
The government can acquire as much as a 30% interest in the concession "against refunding of past expenditure".
"Both wells encountered hydrocarbon shows. Multiple play concepts are believed to exist within the block boundaries, including plays familiar to Tethys, with several leads identified,” the company wrote in a statement.
The first phase of exploration will involve a 3D seismic survey and two exploration wells.