Latest news with #ProductionSharingAgreement
Observer
19-05-2025
- Business
- Observer
Output from Block 53's Mukhaizna field totals 640m barrels
MUSCAT, MAY 19 Oman's Block 53 oilfield, home to the Mukhaizna steam flood project, has produced over 640 million barrels since production began in 2005, according to official statements marking the latest extension of the field's production sharing agreement. The announcement follows the signing of Amendment No. 2 to the Production Sharing Agreement between the Ministry of Energy and Minerals and the Block 53 consortium, extending the agreement to 2050. Mukhaizna is one of the largest and most mature steam flood operations in the region. The Block 53 partnership comprises Oxy (47%), OQ Exploration and Production – OQEP (20%), Indian Oil (17%), Liwa Energy (15%), and PTTEP (1%). More than 3,500 wells have been drilled in the field, located in Al Wusta Governorate, which spans 694 sq km. The consortium aims to add 800 million barrels in gross recoverable resources through further drilling, enhanced oil recovery techniques, and optimisation of steam flood technologies. The deal is expected to unlock fresh investments, improve Oman's reserves position, and reinforce the Sultanate's role as a strategic energy hub. Officials noted that the extension aligns with Oman Vision 2040, which seeks to maximise value from energy assets while boosting economic diversification and energy security. The Ministry reiterated that such long-term agreements enhance investor confidence and support national development goals.
Yahoo
17-05-2025
- Business
- Yahoo
Libya's Future in Peril Again, While Russia Expands Its Influence
North Africa's most resource-rich nation, Libya—home to vast hydrocarbon and mineral reserves—is once again at a crossroads. Despite its potential, the country continues to struggle with instability and lacks the international attention needed for sustainable progress. Backed by Western and Turkish support, Libya's internationally recognized government is attempting to revitalize its upstream oil and gas sector, which is already attracting notable global interest. At the African Energy Forum in Paris, Abdolkabir Alfakhry, a representative of Libya's Ministry of Oil and Gas, announced that nearly 40 international companies have expressed interest in the upcoming licensing round, which is expected to be formally launched in November. Alfakhry emphasized that future development efforts will prioritize offshore resources, an area that remains largely underexplored. According to the Ministry, the bid round—initially announced in March 2025—will offer 22 onshore and offshore blocks covering a total area of 235,267 square kilometers. These include 128,714 km² offshore and 106,553 km² onshore, primarily within the Sirte, Ghadames, and Murzuq Basins, with potential future activity in the Kufra Basin. Contracts will be offered under the Production Sharing Agreement (PSA) model, with deals expected to be signed between November 22 and 30. Estimates suggest the blocks may contain approximately 1.63 billion barrels of oil equivalent in discovered reserves. Libya has actively promoted these opportunities through events in Houston, London, and Istanbul. European energy giants such as Shell, BP, TotalEnergies, Eni, and Equinor are expected to participate, alongside U.S. firms like ConocoPhillips, which has maintained a longstanding presence via the Waha Concession. ConocoPhillips' President for Europe, the Middle East, and Africa, Steiner Vage, confirmed continued American interest in expanding operations in Libya. Global demand for hydrocarbons and the urgency to diversify Libya's economy further reinforce the strategic importance of this bid round. For Europe, new oil and gas volumes from Libya could significantly bolster energy security amid geopolitical uncertainty. However, persistent instability threatens to derail progress. Recent clashes in Tripoli, sparked by the killing of prominent militia commander Abdel Ghani al-Kikli (known as Ghaniwa), once again exposed Libya's fragile security landscape. Ghaniwa, a key figure in the Stability Support Apparatus (SSA), was killed in a facility controlled by the 444 Brigade, loyal to Prime Minister Abdul-Hamid Dbeibah. The violence forced hundreds to flee and risked spreading to other regions. While the Government of National Unity (GNU) has since declared the situation under control, no official response has yet come from the east, where the Libyan National Army (LNA), led by General Khalifa Haftar, remains dominant. The timing of the unrest is especially notable: it coincided with General Haftar's visit to Moscow, where he and his son, Saddam Haftar, met with President Vladimir Putin and Russian Defense Minister Andrei Belousov. Reports suggest discussions covered enhanced military cooperation, arms deals, and potential Russian military infrastructure in eastern Libya—a strategic foothold that would significantly expand Moscow's influence in the Mediterranean. Since its loss of strategic positions in Syria, Russia has been actively seeking new naval and military assets in North Africa. Libya, with its Mediterranean coastline and proximity to Europe, offers a prime location. Russian involvement in Libya complements its expanding presence in Algeria, Tunisia, and across the Sahel, including Mali, Burkina Faso, Niger, and Chad. European leaders are growing increasingly alarmed. Italian Defense Minister Guido Crosetto recently warned that Russian military capabilities could be positioned 'just two steps away' from Italy's maritime territory, threatening NATO's southern flank and Europe's energy and commodity supply lines. The intensifying geopolitical competition in Libya is likely to impact the success of the November bid round. European nations, particularly Italy and France, must take more decisive action. Ensuring Libya's stability is not only key to regional development—it is vital to safeguarding Europe's maritime security and energy future. By Cyril Widdershoven for More Top Reads From this article on
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First Post
28-04-2025
- Business
- First Post
Why Azerbaijan, a Pakistan ally, is now courting India
Azerbaijan, traditionally a strong Pakistan ally, is shifting its focus towards India with new direct flights, growing trade ties, and diplomatic gestures, signaling a potential shift in its geopolitical alignment, according to a report read more Traditionally a strong ally of Pakistan, Azerbaijan may be seeking a closer relationship with India, according to a report, citing recent developments. According to The Economic Times report, in what could be seen as a confidence-building measure between the two countries, Azerbaijan is set to launch direct flights between its capital Baku and Ahmedabad starting July, signaling a growing interest in connecting with major Indian cities. This new route will be Azerbaijan Airlines' third destination in India after Delhi and Mumbai. The airline has confirmed that flights will operate on Tuesdays, Thursdays, Fridays, and Sundays from July 4, added the report. STORY CONTINUES BELOW THIS AD The flights between Mumbai and Baku will become regular from June 16, with operations on the same days. Azerbaijan has seen a surge in Indian visitors, with the number of tourists from India hitting record highs in recent years, reported The Economic Times. After the terrorist attack in Jammu and Kashmir's Pahalgam, Azerbaijan issued a condolence message to India — a gesture significant given Azerbaijan's historically close ties with Pakistan. In another notable diplomatic shift, Azerbaijani President Ilham Aliyev refrained from commenting on the Kashmir issue during a press conference last month when he hosted Pakistani Prime Minister Shehbaz Sharif in Baku. In the past, during similar occasions or his visits to Islamabad, Aliyev had publicly mentioned Kashmir, which was seen as an expression of support for Pakistan, given the Azerbaijan-Pakistan security partnership. However, while Aliyev discussed various aspects of the bilateral relationship, including defence and economic ties, his recent statement notably omitted any mention of Kashmir. This silence is viewed by some as a diplomatic balancing act, signaling Azerbaijan's growing interest in strengthening its relationship with India, the report added. Bilateral trade between India and Azerbaijan has grown significantly in recent years. From around $18 million in 2000, trade reached over $739 million by 2021, and further surged to $1.8 billion in 2022, marking a 156.4% increase. Indian exports to Azerbaijan, which include rice, smartphones, aluminium oxides, drugs, and granite, have also seen significant growth. In 2022, Indian exports amounted to $220 million, up from $45 million in 2011. STORY CONTINUES BELOW THIS AD Rice stands as the dominant export, accounting for 80.8% of Azerbaijan's total rice imports. India's investment in Azerbaijan has also grown. ONGC Videsh acquired a 2.72% stake in the Production Sharing Agreement for the Azeri, Chirag, and deep-water portions of the Gunashli (ACG) fields in the Caspian Sea in 2013, investing over $1.2 billion since then. As bilateral trade, tourism, and strategic partnerships grow, the relationship between India and Azerbaijan appears to be strengthening, despite the complexities of their respective alliances. With inputs from agencies
Asharq Al-Awsat
07-04-2025
- Business
- Asharq Al-Awsat
Libya to Offer Production Sharing Contracts under New Oil Bid Round
Libya is set to offer 22 areas for oil exploration and development in its first such bidding round in more than 17 years, oil officials said on Monday, adding that deals will involve production sharing agreements. The new bidding round, announced on March 3, comes as Africa's second-largest oil producer and member of the Organization of the Petroleum Exporting Countries (OPEC) seeks to raise its oil output. National Oil Corporation (NOC) Chairman Massoud Suleman told an event for potential investors in London that areas on offer are split equally between onshore and offshore. Libya's current crude production has reached about 1.4 million bpd, 200,000 bpd short of its pre-civil war high, according NOC. It aims to raise output further to 2 million bpd, Reuters reported. Foreign investors have been wary of putting money in Libya, which has been in a state of chaos since the overthrow of Muammar Gaddafi in 2011. Disputes between armed rival factions over oil revenues have often led to oilfield shutdowns. NOC Chairman Suleman told Reuters on the sidelines of the event that the round has already generated a lot of interest from international oil companies since it was launched in early March. In January, Abdulsadek told Reuters the country needed between $3 billion and $4 billion in investment to reach output of 1.6 million bpd. The bidding will involve acreage in some of the most prolific basins in the country, including the Sirte, Murzuq and Ghadamis basins as well as offshore Mediterranean, oil minister Khalifa Abdulsadek told Monday's event. A presentation by other NOC officials showed the areas on offer will be under a Production Sharing Agreement model, replacing the more stringent EPSA IV model which Libya adopted under previous bid rounds and which offered fewer returns to investors. NOC expects to sign the new contracts between November 22-30.
