Tethys adds Block 49 to Oman stake

Tethys Oil AB has acquired the 15,449-sq-km Block 49 onshore Oman. The company said it has access to 11,000 km of 2D seismic collected by previous operators and cores from nine historical wells, including Dauka-1, which was the first well drilled in Oman in 1955. Several of the cores show traces of oil, the company said.

The award, to be signed on Nov. 14, covers an initial 3-year exploration period with an option for a 3-year extension. The agreement will convert to a 15-year production-sharing agreement in the event of a commercial discovery. The agreement will include a 5-year extension on production.

Block 49 encompasses a large swathe of sand dunes in southwestern Oman on the sultanate’s border with Saudi Arabia. The block is one of four offered as part of the 2016 Oman licensing round (OGJ Online, Dec. 14, 2016). It will be operated by Tethys Oil Montasar Ltd., a wholly owned subsidiary of the Swedish oil firm. The company will 100% interest in the concession.

Tethys currently has a 30% interest in Blocks 3 and 4 in the eastern part of the sultanate and covering an area of 29,130 sq km. CC Energy Development (CCED) is the operator of Blocks 3 and 4 with a 50% interest. The remaining 20% is held by Mitsui Oil Exploration Co. Ltd. Crude production from the two blocks averaged 40,400 b/d in 2016. Block 3 and 4 production comes from three fields: Farha South, Saiwan East, and Shah.

Oman’s Ministry of Oil & Gas in September opened 10 blocks to be tendered over the next several years. Bidding started Sept. 20 for Blocks 43B, 47, 51, and 65 (OGJ Online, Sept. 11, 2017).

Contact Tayvis Dunnahoe at [email protected].