British oil major BP and Italian oil firm Eni have jointly signed an exploration and production sharing agreement (EPSA) with the Ministry of Oil and Gas of the Sultanate of Oman for the Block 77 in central Oman.
Covering a total area of over 2,700km², Block 77 is located 30km east of the BP-operated Block 61, which contains the producing Khazzan gas project as well as the Ghazeer project.
BP said in a statement: “The agreement for this significant new exploration opportunity follows from the heads of agreement for the block that was signed in January 2019.”
BP and Eni own 50% stakes each in the EPSA for Block 77
BP and Eni have 50% interest each in the EPSA while Eni will serve as operator during the exploration phase.
BP group chief executive Bob Dudley said: “Today’s announcement reflects the continued exploration potential we see in Oman and reinforces BP’s commitment to the Sultanate of Oman.
“We look forward to working with the Government and Eni to continue to explore and develop the country’s resources and secure its long-term gas production.”
The EPSA follows the signing of heads of agreement (HoA) by BP and Eni with the Ministry of Oil and Gas of the Sultanate of Oman in January 2019, to work towards a significant new exploration opportunity in the country.
Earlier this year, Eni and Oman Oil Company Exploration and Production (OOCEP) have signed an exploration and production sharing agreement (EPSA) with the Government of Oman for Block 47.
Block 47 is located in the Omani A’Dakhiliyah Governorate and covers an area of about 8,524km2. The block was awarded to Eni and OOCEP after their joint bid in 2017 under Oman Licensing Round.
According to the agreement, Eni will be the operator of the block, with a 90% interest in the block. OOCEP will own the remaining 10% stake in the block. Exploration operations are expected to begin later this year.
BP operates the Block 61 with 60% interest while Oman Oil Company for Exploration & Production owns a 30% stake, the remaining 10% stake is held by PC Oman, a wholly owned subsidiary of Petronas.
