North Oman Gas & Condensate Discovery under test production: Oxy
The announcement came in published material issued during the Q2 2025 Conference Call hosted by senior Oxy executives over the weekend. Oxy Oman, a wholly owned subsidiary of Occidental Petroleum Corporation, is one of the largest independent investors in the Sultanate's upstream sector, with interests in eight blocks: 9, 27, 62, 30, 65, 51, 72, and 53.
Dubbed the 'North Oman Gas & Condensate Discovery,' the resource is estimated to hold around 250 million barrels of oil equivalent (boe). The reservoir is under test production, while appraisal and development plans are being evaluated, said Oxy. Its proximity to existing infrastructure, including a gas plant with available capacity, is considered a key advantage.
However, dominating the Oman segment of the conference call were developments related to Oxy Oman's flagship asset – the heavy-oil-producing Mukhaizna field in Block 53. An extension agreement signed recently by Oman's Ministry of Energy and Minerals with Oxy and other Block 53 shareholders is 'expected to deliver significant value while supporting Oman's key national objectives,' the US energy firm said. Furthermore, there is potential to grow resources by over 800 million gross barrels from the field, with competitive project returns, it noted.
Under the extension of the Block 53 Exploration and Production Sharing Agreement (EPSA), signed in May, Occidental Mukhaizna and its partners have committed to investing an estimated RO 11.5 billion (approximately USD 30 billion) through to 2050. These investments will cover capital and operational expenditures aimed at enhancing production efficiency and deploying advanced extraction technologies to optimize resource recovery within the block. To date, Oxy Oman has produced over 640 million barrels from Block 53 through the operation of 3,500 wells.
In remarks during the conference call, Vicki Hollub, President and Chief Executive Officer of Oxy, commented: 'That was an incredible agreement that we made with Oman because it benefits both Oxy and Oman, and it allows us the flexibility and possibility to invest there because now the economics will be comparable.'
Kenneth Dillion, Senior Vice President and President, International Oil and Gas Operations, also highlighted the presence of multiple stacked pays—distinct hydrocarbon-bearing layers (pay zones) stacked vertically within the same geological structure—in the block.
'With all the work we've done there, what we see is multiple stacked pays across a very large block. And in the North, we've been producing the layup wells for some time now, which are totally different and don't need any steam. So we see the extension as a win-win for Oxy and the government, and sustainable.'
Net hydrocarbon production from Oxy Oman's portfolio climbed to an average of 76,000 barrels of oil equivalent per day (boepd) during the second quarter of 2025, up from 64,000 boepd in the corresponding period of 2024.
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