Oman extends concession agreement with Oxy for Block 53 until 2050
Muscat – Oman's Ministry of Energy and Minerals on Sunday signed an agreement with Occidental Oman (Oxy Oman) and its partners to extend the exploration and production sharing agreement for Concession Block 53 in Mukhaizna until 2050.
Oxy Oman's partners in the Mukhaizna field include OQ Exploration and Production, Indian Oil Corporation Liwa, and PTT Exploration and Production.
The agreement was signed under the patronage of H E Salim bin Nasser al Aufi, Minister of Energy and Minerals.
The extended agreement provides for continued investment totalling approximately $30bn over the concession period. This includes capital and operational expenditure aimed at improving production efficiency and implementing the latest extraction technologies to maximise utilisation of the region's available resources.
'This strategic step is part of the ministry's efforts to ensure the continued operation of the Mukhaizna field and enhance oil production through the application of advanced steam injection technology and the development of the Thulaylat reservoir,' the Ministry of Energy and Minerals said in a press statement.
The Mukhaizna field has served as a successful model of collaboration between operators and has, over the years, led to tangible improvements in production levels – currently recording the highest daily crude oil output among the sultanate's fields.
'These major investments are expected to support the sustainability of the supply chain and associated operational contracts, which will positively impact economic activity and generate new employment opportunities in the oil and gas sector and its supporting industries,' the ministry added.
Commenting on the agreement, H E Aufi said, 'The extension of the concession agreement for Block 53 represents a pivotal step towards ensuring the continued contribution of this vital field to the national economy. The anticipated investment will support production development and enhance the added value of the energy sector in Oman. We remain committed to working with our partners to fully realise the potential of Block 53.'
This extension reaffirms Oman's continued commitment to the sustainability of its oil and gas sector through the adoption of best practices and modern technologies to maximise returns from its natural resources.
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