Latest news with #Block53
18-05-2025
- Business
Oman extends concession agreement with Oxy for Block 53 until 2050
Muscat – Oman's Ministry of Energy and Minerals on Sunday signed an agreement with Occidental Oman (Oxy Oman) and its partners to extend the exploration and production sharing agreement for Concession Block 53 in Mukhaizna until 2050. Oxy Oman's partners in the Mukhaizna field include OQ Exploration and Production, Indian Oil Corporation Liwa, and PTT Exploration and Production. The agreement was signed under the patronage of H E Salim bin Nasser al Aufi, Minister of Energy and Minerals. The extended agreement provides for continued investment totalling approximately $30bn over the concession period. This includes capital and operational expenditure aimed at improving production efficiency and implementing the latest extraction technologies to maximise utilisation of the region's available resources. 'This strategic step is part of the ministry's efforts to ensure the continued operation of the Mukhaizna field and enhance oil production through the application of advanced steam injection technology and the development of the Thulaylat reservoir,' the Ministry of Energy and Minerals said in a press statement. The Mukhaizna field has served as a successful model of collaboration between operators and has, over the years, led to tangible improvements in production levels – currently recording the highest daily crude oil output among the sultanate's fields. 'These major investments are expected to support the sustainability of the supply chain and associated operational contracts, which will positively impact economic activity and generate new employment opportunities in the oil and gas sector and its supporting industries,' the ministry added. Commenting on the agreement, H E Aufi said, 'The extension of the concession agreement for Block 53 represents a pivotal step towards ensuring the continued contribution of this vital field to the national economy. The anticipated investment will support production development and enhance the added value of the energy sector in Oman. We remain committed to working with our partners to fully realise the potential of Block 53.' This extension reaffirms Oman's continued commitment to the sustainability of its oil and gas sector through the adoption of best practices and modern technologies to maximise returns from its natural resources.
Zawya
12-05-2025
- Business
- Zawya
Oxy eyes 15-year extension in Oman's Block 53, unveils large gas find
US energy major Occidental Petroleum (Oxy) is in advanced talks with the Omani government to extend its contract for Block 53 — home to the world-class Mukhaizna steamflood field — by 15 years to 2040, the company confirmed during its Q1 2025 earnings call. The proposed extension is expected to unlock over 800 million barrels of additional resources across stacked pay formations, enhancing long-term cash flows while aligning with Oman Vision 2040 goals to maximise value from existing energy assets. Occidental noted that the revised terms will support both low-decline enhanced oil recovery and conventional production, ensuring capital efficiency and sustained output. Occidental also reported a significant gas and condensate discovery in North Oman, with estimated in-place resources exceeding 250 million barrels of oil equivalent. Located near existing infrastructure, the field has already entered early production, alongside a second smaller discovery that was fast-tracked to commercialisation within just 13 weeks. 'These developments reflect our deep-rooted partnership with Oman and reaffirm our long-term commitment to supporting its energy strategy,' said CEO Vicki Hollub. She noted that recent efficiency gains have reduced drilling costs by 50 per cent in Block 53, while artificial lift enhancements cut workover costs per barrel by half. The developments form part of Occidental's broader strategy to optimise its international portfolio, prioritising resilient, capital-efficient assets amid global market volatility. With appraisal underway and final approval pending, the Block 53 expansion and new gas discovery are set to reinforce Oman's upstream sector as a key pillar of fiscal sustainability and energy security in the coming decade. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
