(MENAFN- Qatar News Agency) The Sultanate of Oman will soon award a second oil and gas block following a ministerial agreement with a local exploration and production company.
Citing a senior official from Oman's Ministry of Oil and Gas, an Oman Daily Observer report said, "The ministry inked an Exploration & Production Sharing Agreement (EPSA) with Hydrocarbon Finder, a wholly Omani firm, for Block 7 onshore Oman's Wusta Governorate." Petroleum Investments Director General Dr Saleh al Anboury said, "We are in the advanced stages of finalising an EPSA for another Block.
This is an onshore oil and gas block situated close to Block 7 in Wusta Governorate." The three existing oilfields in the concession will be developed as well. This will not only help boost production in the future, but also hopefully add to reserves growth which is significant given the current challenging economic environment, he said.
Local officials singed the EPSA deal last Thursday.
This deal "bucks the trend in subdued Exploration and Production (E&P) investment activity being witnessed regionally and globally in the wake of the oil price downturn", the Omani newspaper report said.
On commitments by oil companies to sustain production despite falling oil prices, the Al Anboury said, "The work programme agreed by the oil company with the Ministry of Oil and Gas commits them to sustain production. They can cut costs, but cannot jeopardise production."
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