Oman signs new exploration and production sharing pact

Plans to drill a minimum of two wells to explore oil resource targets by mid-2022

  
Image used for illustrative purpose. Marmul, Dhofar, Oman, Middle East.

Image used for illustrative purpose. Marmul, Dhofar, Oman, Middle East.

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Muscat: An exploration and production sharing agreement (EPSA) was signed by the Ministry of Energy and Minerals (MEM) with leading US oil producer EOG Resources (EOG) to explore for oil in Block 36 onshore Oman, on Wednesday.

Block 36 is being acquired by EOG in a transaction with Apex Oman (Block 36), and encompasses 4.6 million acres of the Rub Al Khali Basin located in the southwest area of the Sultanate. In partnership with the MEM, EOG plans to drill a minimum of two wells to explore oil resource targets by mid-2022.

This agreement was signed by Dr Mohammed Al Rumhi, the Minister of Energy and Minerals, on behalf of Oman’s Government, and William R. Bill Thomas, Chairman and Chief Executive Officer of EOG Resources.

"This agreement represents the next step for Oman to determine the resource potential of the Rub Al Khali Basin, we are pleased to be partner with EOG Resources, the industry leader of horizontal oil and natural gas exploration and technology, to assess the technical and economic potential of the region,” said Dr Al Rumhi.

“We are pleased with the opportunity to evaluate this oil rich basin for potential horizontal development,” said the Chairman and Chief Executive Officer of EOG. “We look forward to working alongside MEM to expand Oman’s oil resource potential,” he added.




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