Tethys Oil to Explore New Block in Oman
Sweden's Tethys Oil has signed up to explore another block in Oman, it announced on July 5.
The company said it had entered an exploration and production-sharing agreement (EPSA) for a 100% stake in onshore block 58 in the south of the Sultanate, adjacent to block 49 which it already operates.
Block 58 spans 4,557 km2 of the Dhofar governorate, straddling the western flank of the South Oman salt basin and the Western Deformation front, Tethys said. Some 7,600 km of 2D and 1,100 km2 of 3D seismic data has been collected in the area by previous operators. That data, as well as raw logs and reports from two previously drilled wells, has now been made available to Tethys.
Both of the wells encountered hydrocarbon shows, Tethys said, noting that multiple play concepts were believed to exist within the block boundaries, including plays familiar to the company, with several leads identified.
Tethys' EPSA has a three-year initial exploration period that can be extended for another three years. The company will be required in the initial period to undertake a 3D seismic campaign and sink two wells. If commercial volumes of oil or gas are found, the contract will be converted into a 15-year production licence, with an option for an additional five years.
The Omani state has the right to take up to a 30% stake in the block if a find is made, against the refunding of past expenditure.
"We are very happy to have been given the opportunity to explore for hydrocarbons on block 58," Tethys' managing director Magnis Nordin said. "The signing of this EPSA represents another step in Tethys Oil's strategy in the Sultanate of Oman."
Tethys has 30% and 25% stakes in block 3/4 and Gargzdai in Oman, already in production, and additional interests in blocks 49 and 56, which are still at the exploration phase.