Latest news with #Block54
Observer
12-05-2025
- Business
- Observer
OQEP accelerates upstream investments and LNG growth in Q1
MUSCAT: OQ Exploration and Production (OQEP), one of Oman's leading oil and gas operators, has made strategic headway in expanding its upstream portfolio and diversifying energy assets during the first quarter of 2025, setting the stage for long-term production growth and low-carbon energy initiatives. With a robust portfolio of 14 upstream assets across the Sultanate of Oman — nine of which are producing — OQEP operates or partners in a range of concessions at various stages of development. The company's recent activities underscore its dual strategy of optimising oil and gas production while opening new frontiers for exploration and sustainable energy. UNLOCKING NEW INVESTMENT OPPORTUNITIESA key development in Q1 2025 was OQEP's collaboration with the Ministry of Energy and Minerals; and global investment bank Scotiabank to market Blocks 36, 43A and 66. These are part of a broader set of 11 blocks the Ministry plans to offer to investors through 2025–2026. OQEP's central role in this effort reinforces its position as a gateway for upstream investment into Oman's petroleum sector. In March, OQEP signed an Exploration and Production Sharing Agreement (EPSA) for Block 54 with the Ministry and London-listed Genel Energy. Under a joint operating agreement, OQEP will lead operations with a 60% stake, while Genel holds the remaining 40% as a non-operator. This marks Genel's first venture into Oman, lured by the country's stable regulatory environment. The Karawan Concession, spanning 5,632 km² in the South Oman Salt Basin, is underexplored but adjacent to productive fields. Both parties plan to invest up to $25 million in early-phase activities including seismic surveys and well testing over the next three years. ADVANCING EXPLORATION IN BLOCK 47Another significant milestone was the extension of Phase 1 exploration at Block 47, jointly operated with ENI Oman BV. The Najid-1 exploration well, spudded in February 2025, is expected to determine the commerciality of promising gas prospects. The six-month extension, agreed with the Ministry in April, will allow for deeper evaluation and, if successful, may lead to a second development phase. BOOSTING OIL OUTPUT FROM BLOCK 60OQEP also reported 86% progress in the Bisat C Expansion at Block 60 — its flagship oil asset, contributing 17% of the company's Q1 production. Once completed, the expansion will add 37,000 barrels per day (bpd) in oil processing capacity and 400,000 bpd in water treatment. Commissioning is targeted for Q3 2025, solidifying Block 60's role as a core revenue generator.
Observer
25-03-2025
- Business
- Observer
Oman to market 11 new oil & gas blocks in 2025
MUSCAT, MARCH 25 OQ Exploration & Production (OQEP), one of Oman's largest oil and gas firms, has been tapped by the Ministry of Energy and Minerals to assist in the joint marketing of as many as 11 new concession blocks envisaged for launch as part of multiple bid rounds during 2025. The new mandate underscores majority state-owned OQEP's increasingly prominent presence in Oman's vital upstream energy sector. The company currently oversees a high-quality portfolio of 15 upstream oil and gas assets in Oman, ranging from those in the development and production phase to others being appraised for commerciality or undergoing exploration programmes. The list includes six producing assets, which contributed a significant 228k barrels of oil equivalent per day (boepd) of hydrocarbons in 2024 –equivalent to around 14 per cent of Oman's total oil and gas production. Publicly-traded OQEP's additional role in the marketing of Oman's open acreage coincided with the unveiling last month of a new Licensing Round offering three onshore concessions - Block 43A, Block 66, and Block 36. In a filing to the Muscat Stock Exchange (MSX) at the time, the company disclosed that the licensing round was launched in collaboration with OQEP, as well as Scotiabank – Canada's leading international bank and financial services provider. Ahmed al Azkawi, CEO – OQEP 'This announcement comes as part of the cooperation framework between OQEP and the Ministry of Energy and Minerals, which aims to bring new investments into the exploration and production in Oman. On this occasion, OQEP would like to express its greatest gratitude to the Ministry of Energy and Minerals for its trust in OQEP,' Ahmed al Azkawi, CEO – OQEP, stated in the filing. Elaborating on the scale of this collaboration with the Ministry, the CEO revealed in the company's 2024 Annual Report that it would assist in the marketing of a further 11 open concession areas in 2025. 'The Ministry of Energy and Minerals has announced the launch of new investment opportunities in the oil and gas Blocks 36, 43A and 66 in cooperation with OQEP and Scotiabank, with 11 additional blocks underway in 2025, which aims to bring new investments in the exploration and production sector in Oman. The award is subject to requisite formalities including new concession agreements and new partnerships,' Al Azkawi stated in the MDA report. Working alongside the Ministry and OQEP in the marketing of the new Omani acreage is Toronto-based Scotiabank, billed as a global leader in oil and gas M&A advisory, with specialized finance and technical professionals dedicated to the energy sector. More recently, OQEP added its 15th asset - Block 54 - to its expanding upstream portfolio. It follows the signing by the Ministry of an Exploration and Production Sharing Agreement (EPSA) with the partnership of OQEP (with a 60 per cent operating interest) and London-based Genel Energy (with 40 per cent non-operating interest) to develop the 5,632 km2 concession in Al Wusta Governorate.
Observer
11-03-2025
- Business
- Observer
Oman inks EPSA pact for Block 54 with OQEP, Genel Energy
Muscat: The Ministry of Energy and Minerals has entered into an Exploration and Production Sharing Agreement (EPSA) with OQEP and Genel Energy to develop Block 54 (also known as the Karawan Concession', spanning an area of 5,632 km2 in Al Wusta Governorate. The agreement was signed by Eng Salim Nasser Al Aufi, Minister of Energy and Minerals, Ahmed al Azkawi, CEO of OQEP, and Paul Weir, CEO of Genel Energy. Pursuant to the agreement, OQEP shall maintain a 60 per cent operating interest, while Genel Energy shall retain the remaining 40 per cent as a non-operating partner. The initial phase of the agreement, spanning three years, will involve investments of up to $25 million, which include the execution of 3D seismic surveys, drilling of exploration wells, and the re-evaluation of existing wells. The agreement shall enter into force upon the promulgation of a Royal Decree ratifying its terms. On this occasion, Al Aufi stated: "The execution of this agreement signifies a pivotal step in the Sultanate of Oman's endeavor to bolster hydrocarbon exploration and development. Through the expansion of exploration activities in concession areas, in collaboration with OQEP and Genel Energy, we reaffirm our steadfast dedication to increasing hydrocarbon reserves and ensuring sustained production. This initiative reinforces Oman's attractiveness as a prime investment hub for the energy sector, underpinned by a competitive environment that presents unparalleled opportunities for leading international companies. The development of Block 54 is a testament to our ambitious strategy to explore new frontiers and optimize the utilization of our natural resources, building upon OQEP's proven track record, notably exemplified by the substantial production growth in the Bisat field. We are confident that this agreement will deliver tangible outcomes, sustaining oil and gas production and significantly contributing to the national economy." Ahmed al Azkawi, CEO of OQEP, added: "With the signing of the Exploration and Production Sharing Agreement for Block 54, OQEP demonstrates its unwavering commitment to leveraging our substantial expertise to drive further growth. We are delighted to collaborate with Genel Energy, a distinguished international company. This partnership solidifies OQEP's achievements and integral contributions to Oman's upstream sector. The incorporation of Block 54 as our fourth operated asset, in partnership with a leading international player, validates OQEP's robust operational capabilities. We extend our profound appreciation to the Ministry of Energy and Minerals for this opportunity and their trust in OQEP, and we are keen to cultivate a successful and enduring partnership with Genel Energy.' Commenting on the agreement, Paul Weir, CEO of Genel Energy, stated: "We identified Oman some time ago as a preferred jurisdiction for geographical diversification, with its flawless track record and the significant steps it has taken in recent years to set its oil and gas sector up for an exciting future. It is therefore the ideal country for Genel to begin its strategic diversification, expand its portfolio and invest capital. We are delighted to be partnering with OQEP and the Ministry of Energy and Minerals of the Sultanate of Oman on this exciting opportunity and look forward to working together to unlock and expand this contingent resource. We see this entry as an important first step towards achieving our strategic goal of diversification, establishing a significant and profitable footprint in Oman, and diversifying our cash generation."
