Swedish oil company Tethys Oil has signed a farm-out agreement with EOG Resources’ wholly owned subsidiary EOG Resources Oman Block 49 for the onshore Block 49 in Oman.
Under the terms of the agreement, EOG Resources will acquire a 50% stake in the onshore block from Tethys Oil’s wholly owned subsidiary Tethys Oil Montasar.
Covering an area of 15,439 km2, the Block 49 is in the South West of the Sultanate of Oman. The block was awarded to Tethys Oil in 2017.
As per the terms of the deal, EOG will gain access to the 2D seismic grids and recently acquired 2D and 3D seismic surveys, nine exploration wells as well as the additional geotechnical studies and reports.
As consideration for the stake and data, the company will refund all costs incurred on the Block and fund the Thameen-1 exploration well, with total amount of $15m.
Expected to spud in mid-December 2020, the well will be drilled to a depth of close to 4,000 meters to evaluate three potential reservoir targets.
Tethys Oil to retain a 15% stake in the onshore block
Tethys Oil will remain as the operator for the first exploration period that includes the drilling of the Thameen-1 well and would also retain a 15% stake if EOG exercises its option.
EOG will have the option to increase its stake to 85% and to take over the operations of the block if all the commitments for the first period have been satisfied.
EOG Resources chairman and CEO William R. “Bill” Thomas said: “We are excited to partner with Tethys to evaluate an oil-rich basin for both conventional and unconventional potential.
“This agreement expands EOG’s footprint in Oman which also includes Block 36, and provides us with an attractive opportunity to explore a basin with significant potential upside for the company.”
In July this year, Tethys Oil has signed an exploration and production sharing agreement (EPSA) with the Government of the Sultanate of Oman for the onshore Block 58 in Oman.
