OMAN: Exploration deals inked

Total E&P Oman and Petrogas Kahil to develop oil blocks -

MUSCAT — The Ministry of Oil and Gas yesterday signed two new Exploration and Production Sharing Agreements (EPSA). The first one was with Total E&P Oman Petroleum BV for Block 41 that occupies an area of 23,850 sq km located in the Northern coast of the Sultanate.

The second agreement was with Petrogas Kahil LLC for Block 55, which occupies an area of 7,564 sq km located in the Governorate of Al Wusta.

The two agreements were signed by Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, on behalf of the Sultanate’s Government and Arnaud Breuillac, president Middle East at Total E&P signed for Total E&P Oman Petroleum BV, while Usama Mohammed al Barwani signed for Petrogas Kahil LLC.
The two companies under these agreements will conduct geological and geophysical studies upon which exploration wells will be proposed for drilling during exploration periods. The government does not bear any financial commitments during exploration periods.
Nassir bin Khamis al Jashmi, Under-Secretary of the Ministry of Oil and Gas, stated that the first agreement with Total Exploration and Production is very important as it covers a large marine area. The agreement is divided into two stages, the first one includes surveys and exploration activities for one year. This includes digging one well and some associated activities for explorations. Based on the outcomes of the first stage, we will move to the next stage. The value of investment in the region is about $133 million.
He added that the second agreement with Petrogas Kahil LLC is also divided into two stages. The first stage includes the seismic surveys and some associated works alongside with digging four wells during four years.

The total cost of the surveys, which cover about 1,550 km and the re-evaluation of about 3,000 km, is $39 million. Based on the outcomes of the first stage, we will shift to the next stage, which includes digging four wells over two years. The total investments at the two stages are estimated at $45 million.
“I hope that the efforts of the two companies in exploring new oilfields and increasing the hydrocarbon reserves and production will be crowned with success,” he said.
Located off the Omani coast northwest of Muscat, Block 41 covers a large unexplored area of almost 24,000 square kilometres, in water depths ranging from 30 to more than 3,000 metres.
“We are honoured and delighted to have been selected by the Omani Government and look forward to evaluating the potential of this exciting block”, commented Arnaud Breuillac, President Middle East at Total Exploration & Production.
“This acquisition is aligned with Total’s ambitious exploration strategy which focused on frontier basins and new players with strong potential. For Total, this new entry into the ultra deep offshore waters of Oman bolsters other recent additions to our exploration portfolio. We are pleased to be able to harness our deep offshore expertise to work for the Sultanate of Oman, with whom we have shared a common history since 1937,” he added.
The exploration programme is expected to begin with seabed coring in 2014.
In Oman, the Group’s production in 2012 was 37,000 barrels of oil equivalent per day. The Group produces oil primarily on Block 6 (4 per cent) as well as on Block 53 (2 per cent).
The Group also produces Liquefied Natural Gas through its stake in the Oman LNG (5.54 per cent)/Qalhat LNG (2.04 per cent) liquefaction plant, which has a capacity of 10.5 million tonnes per year.
Total is one of the largest integrated oil and gas companies in the world, with activities in more than 130 countries. The Upstream business segment encompasses the Exploration and Production business and the Gas & Power Division. The Group has exploration and production activities in more than 50 countries and produces oil or gas in approximately 30 countries. — ONA