Tethys Oil has been selected to receive an onshore exploration license covering the southwestern part of Oman towards the border of Saudi Arabia, the company said on Nov. 9.
Tethys Oil, through its wholly owned subsidiary Tethys Oil Montasar Ltd., will be a 100% stake in Block 49. The award will be signed on November 14, 2017.
Block 49 covers an area of 15,449 sq km (5964 sq miles). Tethys Oil has gained access to over 11,000 km (6835 miles) of 2-D seismic collected by previous operators.
Nine drillings have been carried out in the license area, several of which have been identified by traces of oil. One of these drillings is Dauka-1, which in 1955 became the first drill hole drilled in Oman.
The Block 49 exploration and production agreement covers an initial three-year exploration period, with an option to be renewed for a further three-year period. If a commercial oil or gas find is made, the agreement will be converted into a 15-year production sharing agreement, which may be extended by another five years.
In the case of a commercial oil or gas find, a company owned by the Oman state will be entitled to acquire up to 30% of the license, against compensation for costs incurred. The work program during the first exploration period consists, inter alia, of geological studies, collection and processing of seismic data as well as drilling.
(c) 2017 ITP Business Publishing Ltd. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers