Through the wholly owned subsidiary Tethys Oil Qatbeet, Tethys Oil will be the operator of Block 58 with a 100% stake
Tethys Oil signs exploration and production agreement for Omani block. (Credit: Pixabay/skeeze)
Swedish energy company Tethys Oil has signed an exploration and production sharing agreement (EPSA) with the authorities of the Sultanate of Oman for the onshore Block 58 in Oman.
Covering an area of 4,557 km2, the Block 58 is in the southern part of Oman and borders on the Block 49 exploration license, where the Swedish company is the operator.
Tethys Oil will be the operator of Block 58 with a 100% stake in the block, through its wholly owned subsidiary Tethys Oil Qatbeet.
Under the agreement, Tethys Oil will be responsible for an initial exploration period of three years and also has an option to extend it for further three-year period.
A Omani state company to acquire 30% stake in the block if there is commercial discovery
The firm said that if it discovers commercial oil or gas, the agreement will be transformed into a 15-year production sharing agreement, with an option to extend for another five years.
A company which is owned by the Omani state will be entitled to acquire 30% of Block 58, if the firm discovers commercial oil or gas.
During the initial exploration period, the work programme includes a seismic 3D study and two exploration wells.
Tethys Oil managing director Magnus Nordin said: “We are very pleased to have been given the opportunity to prospect for hydrocarbons on Block 58.
“The signing of the EPSA agreement represents another step in Tethys Oil’s strategy in the Sultanate of Oman.
“I would like to take this opportunity to express our warm thanks to the Government of the Sultanate of Oman for this exciting opportunity.”
Tethys Oil has taken part in a total of 7,600km 2D seismic and 1,100km 2 3D seismic collected by previous operators on the block.