The Government of the Sultanate of Oman, Oman Oil Company Exploration and Production (OOCEP) and Eni Oman BV, a subsidiary of Eni, have entered into an Exploration and Production Sharing Agreement (EPSA) for Block 52, located offshore Oman.
The signing ceremony took place at The Ministry of Oil & Gas on the 14th of November 2017 and was attended by the Minister of Oil and Gas of Oman, H.E Mohammed bin Hamad Al Rumhi, Oman Oil Company S.A.O.C.’s CEO, Isam Al Zadjali, Eni’s CEO, Claudio Descalzi and Qatar Petroleum’s President and CEO, Saad Sherida Al Kaabi.
Block 52 is an underexplored area with hydrocarbon potential located offshore in the southern region of Oman. The area extends from Al Wusta region towards the Dhofar region, encompassing the Hallaniyat islands. It covers a total area of approximately 90,760 sq.km with the water depth ranging from approximately 10m to 3,000m. Pursuant to the EPSA, Eni Oman BV is the Operator of Block 52. Eni Oman BV holds an 85% stake, whilst its partner OOCEP holds the remaining 15% stake in Block 52.
Block 52 was awarded to Eni and OOCEP following an international bid round process launched in October 2016.
During the same event, Eni and Qatar Petroleum signed an agreement for the assignment of 30% interest in Block 52 to Qatar Petroleum. The assignment is subject to obtaining the required approvals from the Government of the Sultanate of Oman.
Following the completion of the assignment, the Contractor under the EPSA will consist of affiliates of Eni with a 55% stake, Qatar Petroleum with 30% and OOCEP with 15%.
Commenting on the EPSA, Isam Al Zadjali, the CEO of Oman Oil Company (OOC) said, “The exploration of the area is part of our plans to contribute towards increasing the country’s hydrocarbon reserves and production potential; in turn realizing further growth in Oman and strengthening the local economy. I am confident the collective experience of both companies will prove valuable in exploring the offshore Block 52.”
OOCEP currently operates three blocks in Oman (60, 42 & 48) and is a participant in a number of joint ventures, some of which are large scale projects in the Omani upstream landscape such as the Khazzan tight gas project operated by BP and the Mukhaizana field and Block 9 both of which are operated by Oxy