4 days ago
Oman to unlock 2 TCF of additional gas from Block 61: OQEP
MUSCAT, AUG 13
Block 61 – one of Oman's largest gas blocks, currently accounting for around one-third of the country's total gas production – is the focus of a new initiative to uncover additional gas resources to help meet future demand growth, according to OQ Exploration & Production (OQEP), a key shareholder with a 30% non-operating interest in the license.
Energy supermajor BP is the operator of Block 61 with a 40% equity stake. Current production from the license averages 1.5 billion cubic feet per day (bcf/d) of gas, along with around 60,000 barrels per day (bpd) of condensate.
Plans are now underway to unlock further gas volumes from this flagship asset, said OQEP – the upstream energy arm of OQ Group. 'OQEP worked with its partner BP to update the asset development plan for Block 61, which anticipates developing up to 2 trillion cubic feet (TCF) of additional recoverable gas resources for future growth,' the publicly traded oil and gas firm stated in its Directors' Report for the six months ended June 30, 2025.
OQEP officials had earlier revealed that the additional gas volumes, expected to be unlocked through an updated Field Development Plan (FDP), are being considered for the country's planned fourth LNG train project, with a proposed capacity of 3.8 million tonnes per year.
The FDP, which targets reserves beyond the current 2P estimates, is anticipated to receive government approval by late 2025 or early 2026. Final investment decisions (FIDs) for both the FDP and the new LNG train are expected in 2026, with OQ joining BP and other partners in monetizing these additional resources through LNG exports. Other stakeholders in Block 61 include Thai energy giant PTTEP (20%) and Malaysia's Petronas (10%).
Also during the first half of this year, OQEP added new licenses to its substantial upstream portfolio while advancing the development of existing assets. Notably, the company and its partners in Block 53, containing the prolific Mukhaizna heavy oil field, secured an amendment to the Exploration and Production Sharing Agreement (EPSA), extending the agreement by 15 years to 2050 under improved fiscal terms. This extension is expected to enable the production of up to an additional 800 million gross barrels of oil.
In June, OQEP and its Block 47 partner, ENI Oman BV, secured an agreement with the Ministry of Energy and Minerals to extend Phase 1 of Block 47 by six months from March 24, 2025, allowing for the drilling of an exploration well.
Furthermore, as part of its ongoing collaboration with the Ministry, OQEP—alongside financial advisor Scotiabank—supported the marketing of Blocks 18, 36, 43A, and 66 to attract new investment into Oman's exploration and production sector. These blocks form part of the 15 blocks the Ministry plans to promote during 2025 and 2026 with OQEP's continued assistance.
In addition, OQEP and Turkish Petroleum Corporation (TPAO) signed a Cooperation Agreement to explore new opportunities, followed by an exclusive agreement with the Ministry to assess and evaluate selected blocks.
