The Ministry of Energy and Minerals, Oman signed a new Exploration and Production Sharing Agreement (EPSA) to develop Block 71, Habhab Ultra-Heavy Oilfield a stretch of 282 square kilometres.
The agreement signed with Oman’s Majan Energy.
The company will conduct geological and geophysical studies, drill appraisal and pilot wells and use enhanced oil recovery (EOR) to evaluate and produce the ultra-heavy crude in Habhab field.
The agreement was signed on behalf of the government by Dr. Mohammed Hamad al-Rumhy, Minister of Energy and Minerals (MEM), and Eyhab al-Haj, Chairman, Majan Energy LLC.
Dr. Salman Mohammed al-Shidi, Director General of Oil and Gas Investments Affairs, MEM, said that Habhab oilfield of Block 71 is a promising reservoir, which the company will take 3 to 5 years to explore, using new technologies.
Majan Energy will work with partners from China to use the latest technology, and that the company will invest $15-20 million in its tasks, including the drilling of wells, statement said.
The Ministry of Energy and Minerals hopes that the company will meet with success in its endeavours to discover hydrocarbons, which will boost reserves and production rates in the country.
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