Oman has awarded the hydrocarbon exploration and development rights for the concession Block 71 to the Omani energy exploration and production company Majan Energy.
The Ministry of Energy and Minerals on Monday signed a new exploration and production sharing agreement (EPSA) with Majan Energy to develop the concession block. The agreement was signed in Muscat by H E Dr Mohammed Hamed al Rumhi, Minister of Energy and Minerals, and Eyhab al Haj, chairman of Majan Energy.
Block 71, which occupies an overall area of 282sqkm, is home to proven ultra-heavy oil reserves.
The commitment of Majan Energy under the agreement is obtaining geological and geophysical studies, drilling appraisal and pilot wells and use enhanced oil recovery (EOR) technology to evaluate and produce the ultra-heavy crude in Habhab field in the Block 71.
In a statement to Oman News Agency, Dr Salman Mohammed al Shidi, director general of oil and gas investments affairs at the Ministry of Energy and Minerals, said that Habhab oilfield of Block 71 is a promising reservoir, which the company will take three to five years to explore, using new technologies.
Shidi said that Majan Energy will work with partners from China to use the latest technology and the company will invest US$15-20mn in its tasks, including the drilling of wells.
The Ministry of Energy and Minerals wishes that Majan Energy’s efforts will be crowned with success in discovering hydrocarbons which will increase the reserves and the production rates in the country,’ the Ministry of Energy and Minerals said in a statement.
The deal with Majan Energy is the second exploration and production sharing agreement signed by the Ministry of Energy and Minerals in the past four months. In October 2020, the ministry awarded the exploration and development rights for the concession Block 70 to the Swedish oil exploration and production company Maha Energy.