Genel enters into exploration, production sharing agreement in Oman

Genel Energy has signed agreements that will see Genel enter into Block 54 Exploration and Production Sharing Agreement in the Sultanate of Oman for a 40% participating interest, in partnering with OQ Exploration & Production, which will hold a 60% participating interest and operatorship of the license.

Block 54 (the Karawan Concession) is located onshore Oman 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 approximately 600 km south of Muscat and is largely underexplored.

Over the next three years , Genel and OQEP expect to invest approximately $25 million gross in direct costs over the Initial Phase (3 years) of the EPSA, to undertake the 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 the Initial Phase.