Oman government plans to award two oil blocks

At least two onshore oil blocks will be awarded to multinational firms for development on production sharing basis by the year-end, even as plans are afoot to re-tender offshore block 18

relinquished by India’s Reliance Industries early this year.
This is close on the heels of signing two similar agreements — one with US-based international energy firm PetroTel to develop offshore block 40 in Musandam and the other with Canada’s Allied Petroleum Exploration for developing block 36 in the Dhofar region.
“We expect to award two onshore blocks by the end of the year,” Nasser bin Khamis Al Jashmi, undersecretary at the Ministry of Oil and Gas, told reporters here, on the sidelines of a signing ceremony to develop bock 42. It appears that the tendering process is in an advanced stage and the other government agencies are expected to give clearance for proceeding with the proposed concession agreement.
Block 18 re-tendering
On the plans to re-tender block 18, Al Jashmi said: “We think there is (still) prospects in the block. It will be re-tendered. Probably, they (Reliance) must have drilled in a wrong place. We are now compiling all the data and will try to attract companies.”
Two agreements
The Ministry of Oil and Gas yesterday signed two agreements — one for exploration and production sharing for block 42 and the other a gas sales agreement for block 60 — with Oman Oil Company Exploration and Production (OOCEP).
“The commitment of the company under this agreement (for block 42) is to acquire new seismic data, and drill one exploratory well, in the initial phase, stipulated for three years. Previous exploration wells in the block indicated hydrocarbon, and OOCEP plans to further assess their prospects,” said a ministry statement.
“This will be followed by different phases, Al Jashmi noted.
Block 42 has been identified as a suitable starting point to implement OOCEP’s goal to conduct exploration operation in Oman. The block covers an area of about 25,600 square kilometers.
The ministry statement said that block 60 is an onshore block covering 1,485 square kilometers and contains Abu Tubul gas and condensate field, which was discovered in 1998. “The commitment of the company under this agreement is to provide up to 90 million cubic feet per day of gas production starting in 2013 by developing the proven gas volumes found in Abu Tubul field in block 60 as set in the field development plan and stipulated by the exploration and production sharing agreement ratified by Royal Decree no 56/2011.”
Both these pacts were signed by Mohammed bin Hamad Al Rumhy, Minister of Oil and Gas and Salim bin Zahir Al Sibani, chief executive of OOCEP, yesterday.
Iran gas
Al Jashmi said the government anticipates daily associated and non-associated natural gas production to touch around 108 million cubic meters this year. On a proposal to import natural gas from Iran, he said; “We are still talking to them. We hope that we will be able to finalise a deal with Iran.”
Al Jashmi said the average crude oil production in the country may be in the region of 870,000-880,000 barrels per day. “We produced 907,000 bpd in August.”
He said the Harweel enhanced oil recovery project of Harweel will be commissioned by the end of the year. “This will produce 30,000 barrels a day in the first phase, which will go up to 60,000 sometime later.”
Source: Times Of Oman