Tethys adds Block 49 to Oman stake

Tethys Oil AB has acquired the 15,449-square kilometre Block 49 onshore Oman.

The company said it has access to 11,000 kilometres 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, signed on the 14^th November, covers an initial three-year exploration period with an option for a three-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 five-year extension on production.

Block 49 encompasses a large swathe of sand dunes in south-western Oman on the sultanate’s border with Saudi Arabia. The block is one of four offered as part of the 2016 Oman licensing round.

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 square kilometres.

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 Company 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.

In September Oman’s Ministry of Oil & Gas opened 10 blocks to be tendered over the next several years. Bidding started on the 20^th September for Blocks 43B, 47, 51, and 65.