Oman signs exploration and production agreement
Muscat – The Ministry of Energy and Minerals has signed an Exploration and Production Sharing Agreement (EPSA) with OQ Exploration & Production (OQEP) and Genel Energy for the development of Concession Area 54, known as the Karawan Concession , in Al Wusta Governorate.
The agreement, covering an area of 5,632 square kilometres, was signed by H E Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, Ahmed al Azkawi, CEO of OQEP, and Paul Weir, CEO of Genel Energy. Under the terms of the deal, OQEP will hold a 60% operating interest, while Genel Energy will retain the remaining 40% as a non-operating partner.
The initial three-year phase of the agreement will see investments of up to $25 million, including 3D seismic surveys, exploration drilling, and the reassessment of existing wells. The agreement will take effect following the issuance of a Royal Decree ratifying its terms.
H E Aufi stated that the agreement is a 'pivotal step' in Oman's efforts to expand hydrocarbon exploration, ensuring sustained production and reinforcing the country's appeal as an investment destination.
OQEP CEO Ahmed al Azkawi highlighted the company's commitment to driving growth and expanding its operational portfolio, while Genel Energy CEO Paul Weir emphasised Oman's attractiveness as a strategic investment location for oil and gas sector diversification.
The agreement aligns with Oman's broader strategy to optimise resource utilisation and enhance its energy sector's competitiveness.
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