Oman’s Ministry of Energy and Minerals is all set to award a new onshore exploration block to Swedish energy company Maha Energy.
Located in the middle of the Salt Basin in the central part of Oman, Block 70 spans across an area of 639km².
It is covered by both 2D and 3D seismic data, which has been acquired by previous operators. The seismic data has been made available to the energy company.
Maha Energy will be the operator of the block and will own a 100% working interest (WI). There are eight wells that have been drilled within the block’s boundary, with five of them on the Mafraq oil field.
Maha Energy president and CEO Jonas Lindvall said: “To be allowed an opportunity to explore and develop the Mafraq oil field is an exceptional opportunity to add value to Maha and the people of Oman.
“The Mafraq oil field contains significant amounts of oil and previous and extensive pump tests has proven the productivity of the field.”
According to the energy company, the block will mark Maha’s entry in Oman and will contribute to the company’s ‘diversification strategy’.
The Exploration and Production Sharing Agreement (EPSA) is scheduled to be signed on 1 October. It is, however, subject to a Royal Decree.
Covering an initial exploration period of three years, the agreement will contain an option to extend for a further three years.
Maha Energy stated: “In case of a commercial oil or gas discovery, the EPSA can be transformed into a 15-year production licence, which can be extended for another five years.
“In case of a commercial discovery, the Oman Government Oil Company has a right to acquire up to a 30% interest in Block 70 against refunding the pro-rata share of past expenditure.”
In February 2017, Maha Energy agreed to the acquisition of all outstanding shares of Gran Tierra Energy Brasil (Gran Tierra Brasil) from Gran Tierra Energy for $35mn.
