Genel Energy plc entered into an exploration and production sharing agreement for Block 54 in the Sultanate of Oman.
Block 54 (Karawan Concession) is onshore on the eastern side of South Oman Salt basin and immediately adjacent to existing production. The block covers an area of 5,632 sq km within the Al Wusta Governorate about 600 km south of Muscat and is largely underexplored.
The agreement is for a 40% participating interest, in partnership with OQ Exploration & Production SAOG (OQEP) who will hold a 60% participating interest and serve as operator.
Over the initial phase in the next 3 years, Genel and OQEP expect to invest about $25 million (gross) in direct costs to undertake a minimum work obligation that involves testing accessible existing wells, drilling, and 3D seismic acquisition. Genel will provide a partial carry of OQEP’s 60% participating interest during this phase.
