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Oman Signs Oil Exploration Agreement with Tetheys Oil

Oman Signs Oil Exploration Agreement with Tetheys Oil

Monday, 6 July, 2020 - 10:00
Minister of Oil and Gas Mohammed bin Hamad al-Rumhy and VP Corporate Affair on behalf of Tethys Oil Qatbeet Hussain al-Lawati signing the agreement. (Oman News Agency)

The Sultanate of Oman signed a new exploration and production sharing agreement with Tetheys Oil for the right to explore and develop the concession Block 58.

Under the deal, the company will execute a number of geological and geophysical studies, 3D seismic acquisition, and drill wells during exploration periods.

The agreement was signed by Minister of Oil and Gas Mohammed bin Hamad al-Rumhy and VP Corporate Affair on behalf of Tethys Oil Qatbeet Hussain al-Lawati.

Oman News Agency (ONA) did not reveal the details of the deal, but it is clear from the new policy that Oman wants to expand the oil sector.

Oman currently produces about one million barrels per day (bpd) of oil, and over four billion cubic feet of gas. It also exports two-thirds of its oil production and consumes two-thirds of its gas production.

Last month, BP Oman Chairman Yousef bin Mohammed al-Ojaili said that gas production from al-Khazzan gas, known as Ghazeer, project hit one billion cubic feet of gas per day, and will rise to 1.5 billion cubic feet of gas per day.

The company produces 35,000 barrels of condensates per day, Ojaili told ONA.

“This rate is set to double by the start of production at Ghazeer gas project,” he added.

The chairman added that drilling at the company’s sites progresses at full swing, noting that 126 of the 300 wells were drilled at the site.

Ojaili pointed out that the company executed $9.3 billion-worth of investments out of the targeted $16 billion planned investments.

BP resumed gas production in Khazzan field in early April after a planned three-week closure.

Oman's efforts in the recent period resulted in new oil and gas explorations, which enhances the Sultanate's reserves.

The Oil Ministry announced earlier that it will sign a number of agreements this year, and it is currently finalizing the procedures targeting non-associated gas development projects.

The ministry added that the oil and gas sector has made tangible and continuous progress.

It emphasized that oil and gas remain crucial, as many industries rely on petrochemical derivatives in their productions, amid the absence of a current alternative.

Energy alternatives, such as wind and solar energy, require many years of work and study to enter into production and are not completely reliable, according to the ministry.

Official figures showed that Oman achieved a budget surplus during the first four months of the year after it cut public spending in light of the reduction of oil prices and the coronavirus pandemic.

The National Center for Statistics and Information announced that sharp cuts in public spending led to a surplus of $349.48 million during the period between January and April.

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