Latest news with #EPSA
Observer
4 days ago
- Business
- Observer
North Oman Gas & Condensate Discovery under test production: Oxy
MUSCAT: A major hydrocarbon discovery announced recently by US energy major Occidental (Oxy) in one of its concessions in north Oman is undergoing production testing, alongside an evaluation of its appraisal and development plans. 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.
Libya Review
18-07-2025
- Business
- Libya Review
Libya's NOC & BP Sign Agreement to Redevelop Major Oilfields
Libya's National Oil Corporation (NOC) has signed a significant Memorandum of Understanding (MoU) with British energy company BP to assess the redevelopment of two of Libya's most important oilfields, Sarir and Messla, located in the Sirte Basin. The agreement marks a strategic step toward revitalizing some of the country's oldest hydrocarbon assets and exploring broader energy opportunities. Discovered in 1961 and 1971 respectively, the Sarir and Messla oilfields are among Libya's largest and most productive. However, over the years, both fields have faced declining output due to aging infrastructure and limited reinvestment. Under this new MoU, BP and NOC will jointly examine technical data, assess the remaining resource potential, and evaluate options for redevelopment, enhanced recovery, and further exploration in the surrounding areas. The agreement also includes provisions to study the potential for unconventional oil and gas reserves elsewhere in Libya. For the NOC, this partnership reflects a renewed commitment to attracting international expertise to boost production capacity and modernize the country's energy sector, which remains the cornerstone of Libya's economy. BP's return to active collaboration in Libya is especially significant. In 2007, the company signed an Exploration and Production Sharing Agreement (EPSA) with NOC covering large onshore and offshore blocks. However, the outbreak of political instability in Libya led to the declaration of force majeure and a freeze on activities. In 2022, Italian energy company Eni acquired a 42.5% stake in the EPSA and became the operator, with BP retaining an equal share and the Libyan Investment Authority holding the remaining 15%. Force majeure was officially lifted in 2023, and operations resumed in the onshore areas. BP's Executive Vice President for Gas and Low Carbon Energy, William Lin, described the new MoU as a step toward deepening collaboration with Libya. 'This agreement shows our strong interest in helping shape the future of Libya's energy sector. We hope to apply our global expertise in redeveloping major oilfields to support NOC's goals,' he said. The MoU lays the groundwork for technical studies and feasibility assessments, which could lead to renewed field development and exploration programs. If successful, the partnership could result in increased production, technology transfer, and new investment flows into Libya's oil and gas sector. Tags: AgreementBPgaslibyaLibya's National Oil Corporation (NOC)oil
Libyan Express
11-07-2025
- Business
- Libyan Express
BP to reopen Tripoli office in Q4 2025
BP enters MoU with Libya's NOC for Sarir and Messla field exploration. Photo via BP BP is set to reopen its Tripoli office in the final quarter of 2025 as part of a broader effort to relaunch its operations in Libya, the country's state-owned National Oil Corporation (NOC) announced this week. The move signals renewed international confidence in Libya's oil and gas sector after a prolonged period of political instability and operational disruption. The decision follows the signing of a memorandum of understanding (MoU) between BP and NOC in London, which outlines plans to explore the redevelopment of two of Libya's most prolific oilfields—Sarir and Messla—both located in the Sirte Basin. Discovered in the 1960s and 70s, the fields are considered strategic assets in Libya's upstream portfolio and are now the focus of new technical and commercial studies led by BP. The MoU also covers the evaluation of unconventional oil and gas resources, as well as a broader review of nearby exploration zones. BP will work closely with NOC to access and analyse technical data in order to assess future development opportunities. These studies could pave the way for BP's return to large-scale investment and signal a major expansion of its interests in the country. Since signing an Exploration and Production Sharing Agreement (EPSA) in 2007, BP's activity in Libya has faced repeated setbacks, including a force majeure declaration that stalled its operations for years. That status was lifted in 2023, when BP and its partner Eni resumed exploration in onshore areas, marking a cautious re-entry into the Libyan market. 'This agreement reflects our strong interest in deepening our partnership with NOC and supporting the future of Libya's energy sector,' said William Lin, BP's executive vice president for gas and low carbon energy. 'We hope to apply BP's experience from redeveloping and managing giant oil fields around the world to help optimise the performance of these world-class assets. We look forward to conducting thorough studies, working closely with NOC, to evaluate the resource potential of this promising region.' NOC chairman Masoud Suleiman Masoud hailed BP's return as a key milestone in Libya's efforts to restore international investment flows and strengthen technical capabilities in the energy sector. Speaking at the MoU signing ceremony in London, Masoud emphasised the importance of cooperation in areas such as skills development, training, and long-term capacity building. 'We see BP's re-engagement not only as an economic partnership but as a transfer of knowledge, technology, and global best practices that can help transform Libya's oil sector into a more competitive and sustainable industry,' he said. The agreement with BP comes as Libya intensifies efforts to stabilise its oil sector and attract global energy majors back to the country. With production currently fluctuating around 1.2 million barrels per day, Libyan authorities are aiming to push that figure to 2 million over the next few years—an ambition that hinges on foreign capital, modern infrastructure, and technical expertise. In a parallel development, NOC also signed an agreement with Shell to carry out feasibility studies for the al-Atshan field and other oil sites exclusively under NOC ownership. The deal excludes any areas with existing third-party rights and reinforces NOC's strategy of selectively partnering with global firms to maximise value from its untapped reserves.
Times of Oman
18-05-2025
- Business
- Times of Oman
Oman secures OMR11.5 billion investment through Block 53 concession extension
Muscat: The Ministry of Energy and Minerals has signed an agreement to extend the Block 53 Exploration and Production Sharing Agreement (EPSA) for Occidental Mukhaizna and its partners, securing operations until 2050. Under the amended agreement, the concession has been extended to 2050, facilitating an estimated investment of OMR11.5 billion (approximately $30 billion) over the extended term. These investments will cover capital and operational expenditures designed to enhance production efficiency and deploy advanced extraction technologies, optimising resource recovery within the block. The anticipated investments are expected to strengthen supply chain sustainability and operational support contracts, fostering economic growth and generating employment opportunities across Oman's oil, gas, and related industries. The Mukhaizna field in Al Wusta Governorate has been a key contributor to Oman's oil production, consistently ranking as Oman's highest-producing crude oil field. Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals, emphasised that the extension of this agreement is a strategic milestone in ensuring the field's continued role in supporting the national economy. He highlighted that the planned investments will drive production growth and enhance value creation within Oman's energy sector. The Ministry remains committed to collaborating with its partners to maximise the potential of Block 53, a cornerstone of its strategy for sustainable and responsible hydrocarbon production, the minister added.
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.
