Latest news with #Exploration&ProductionSharingAgreement
Zawya
11-04-2025
- Business
- Zawya
Tethys Oil sees ‘high activity' across Oman upstream acreage in 2024
MUSCAT: International oil and gas firm Tethys Oil, currently ranked among largest players by acreage in Oman's upstream hydrocarbon sector, recorded an output of 7,889 barrels per day (bpd) of oil – corresponding to its working interests – from its assets in 2024. This compares with an output of 8,818 bpd in 2023, entailing a decline of 11 per cent attributable to severe weather conditions with heavy rain and floods that impacted production from its principal asset – Blocks 3&4 in eastern Oman. Tethys Oil has a 30 per cent interest in the adjoining blocks, which are operated by CC Energy Development (with a 50 per cent interest). Mitsui E&P Middle East is a 20 per cent equity partner. Commenting on its strategy for Oman's upstream sector, Swedish-based firm noted: 'Tethys Oil focuses its value creation process on the high potential, yet underexplored, areas flanking the basins that currently constitute most of Oman's oil production. So far, Tethys Oil's main success story is Blocks 3&4, with 45.6 million barrels of oil produced for Tethys Oil and with continued significant exploration potential remaining,' it stated in its 2024 Annual & Sustainability Report. Besides Blocks 3&4, Tethys Oil also has a 100 per cent operating interest in Block 49; 65 per cent operating interest in Block 56 (along with Medco, Biyaq and Intaq as equity partners), and 100 per cent operating interest in Block 58. Significantly, 2024 was characterized by 'high activity' across its Oman portfolio, with both exploration and production activities received equal focus. In Blocks 3&4, currently its main producing acreage, development and appraisal drilling focused on the Farha and Shahd fields. In all, 49 new development and appraisal wells were drilled across the two blocks last year. A key highlight of 2024 was the successful launch of the second phase of the landmark 'Gas-to-Power' project in Blocks 3&4. 'The aim of the project is to reduce routine flaring and the use of diesel generators by using the associated gas produced for power generation. In total, around 90 producing wells were connected to the power plant by the end of the year. The project led to an increase in gas utilisation by 630 per cent and a reduction in flaring by 10 per cent taking the Group closer to the World Bank's goal of 'Zero Routine Flaring by 2030', Tethys Oil explained in its report. Another notable achievement of the year was the formal declaration of Block 56 as 'commercial' following the approval of a Field Development Plan (FDP) by the Ministry of Energy and Energy setting out a strategy for unlocking the hydrocarbon resources of the block. The FDP outlines a roadmap for the development of three discoveries in the Eastern Flank area, as well as a plan to appraise and develop nearby leads and prospects. Following the FDP's approval in November, Tethys Oil and its partners were awarded an extension of the Exploration & Production Sharing Agreement (EPSA) until 2044. In Block 58, the drilling of the Kunooz-1 exploration well failed to confirm the presence of hydrocarbons during test. However, the well yielded 'an increased understanding of the play's prospectivity', additional analysis and evaluation planned for 2025, said Tethys Oil. Finally, the EPSA for Block 49 – currently in the second exploration phase – has been extended by the Ministry until December 2026. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
09-04-2025
- Business
- Observer
Tethys Oil sees ‘high activity' across Oman upstream acreage in 2024
MUSCAT: International oil and gas firm Tethys Oil, currently ranked among largest players by acreage in Oman's upstream hydrocarbon sector, recorded an output of 7,889 barrels per day (bpd) of oil – corresponding to its working interests – from its assets in 2024. This compares with an output of 8,818 bpd in 2023, entailing a decline of 11 per cent attributable to severe weather conditions with heavy rain and floods that impacted production from its principal asset – Blocks 3&4 in eastern Oman. Tethys Oil has a 30 per cent interest in the adjoining blocks, which are operated by CC Energy Development (with a 50 per cent interest). Mitsui E&P Middle East is a 20 per cent equity partner. Commenting on its strategy for Oman's upstream sector, Swedish-based firm noted: 'Tethys Oil focuses its value creation process on the high potential, yet underexplored, areas flanking the basins that currently constitute most of Oman's oil production. So far, Tethys Oil's main success story is Blocks 3&4, with 45.6 million barrels of oil produced for Tethys Oil and with continued significant exploration potential remaining,' it stated in its 2024 Annual & Sustainability Report. Besides Blocks 3&4, Tethys Oil also has a 100 per cent operating interest in Block 49; 65 per cent operating interest in Block 56 (along with Medco, Biyaq and Intaq as equity partners), and 100 per cent operating interest in Block 58. Significantly, 2024 was characterized by 'high activity' across its Oman portfolio, with both exploration and production activities received equal focus. In Blocks 3&4, currently its main producing acreage, development and appraisal drilling focused on the Farha and Shahd fields. In all, 49 new development and appraisal wells were drilled across the two blocks last year. A key highlight of 2024 was the successful launch of the second phase of the landmark 'Gas-to-Power' project in Blocks 3&4. 'The aim of the project is to reduce routine flaring and the use of diesel generators by using the associated gas produced for power generation. In total, around 90 producing wells were connected to the power plant by the end of the year. The project led to an increase in gas utilisation by 630 per cent and a reduction in flaring by 10 per cent taking the Group closer to the World Bank's goal of 'Zero Routine Flaring by 2030', Tethys Oil explained in its report. Another notable achievement of the year was the formal declaration of Block 56 as 'commercial' following the approval of a Field Development Plan (FDP) by the Ministry of Energy and Energy setting out a strategy for unlocking the hydrocarbon resources of the block. The FDP outlines a roadmap for the development of three discoveries in the Eastern Flank area, as well as a plan to appraise and develop nearby leads and prospects. Following the FDP's approval in November, Tethys Oil and its partners were awarded an extension of the Exploration & Production Sharing Agreement (EPSA) until 2044. In Block 58, the drilling of the Kunooz-1 exploration well failed to confirm the presence of hydrocarbons during test. However, the well yielded 'an increased understanding of the play's prospectivity', additional analysis and evaluation planned for 2025, said Tethys Oil. Finally, the EPSA for Block 49 – currently in the second exploration phase – has been extended by the Ministry until December 2026.
Times of Oman
10-03-2025
- Business
- Times of Oman
EPSA pact signed for development of Concession Area 54 in Oman
Muscat: The Ministry of Energy and Minerals has entered into an Exploration and Production Sharing Agreement (EPSA) with OQEP and Genel Energy to develop Concession Area 54, known as the "Karawan Concession," spanning an area of 5,632 square kilometers in Al Wusta Governorate. The agreement was signed by His Excellency Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, Mr. Ahmed Al Azkawi, CEO of OQEP, and Mr. Paul Weir, CEO of Genel Energy. Pursuant to the agreement, OQEP shall maintain a 60% operating interest, while Genel Energy shall retain the remaining 40% 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, His Excellency Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, 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 Area 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." Commenting on this, Ahmed Al Azkawi, CEO of OQEP, said: "Signing the Exploration & Production Sharing Agreement for Block-54 underscores OQEP's commitment to leveraging our extensive expertise in pursuit of growth opportunities. We are excited to partner with an experienced international company like Genel Energy. This partnership exemplifies OQEP's accomplishments and contributions to Oman's upstream sector. Adding Block-54 as our fourth operated asset in collaboration with an international partner is a testament to OQEP's operational capabilities. We thank the Ministry of Energy and Minerals for the opportunity and their trust in OQEP and look forward to embarking on a fruitful 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."
