Oman’s energy company Hydrocarbon Finder (HCF) signed a US$160 million Islamic project financing facility with Meethaq to develop oil and gas fields in the country’s Block 7 permit and boost production.
HCF plans to triple the production from Block 7 in the short-term… and intends to invest up to $160 million towards development activities in a phased manner, the company said in a statement.
Located on the south Rub Al Khali (Empty Quarter) basin, Block 7 is and has been producing hydrocarbons for the last three decades.
HCF took over the operatorship in April 2016 of Block 7 under an exploration and production sharing agreement signed with Oman’s government. It planned development programme to revive production from the discovered fields in the Block and has more than doubled the production within a span of 18 months.
Meethaq’s deputy CEO Sulaiman Al Harthy said the financing facility is “part of its commitment to spotlight investment opportunities in core development sectors across the Sultanate.”
Mohammed Al Jahwari, CEO of HCF, said: “With the low oil price environment there is a renewed interest to develop matured fields using the latest available technology to minimise risks and maximise returns.”
HCF undertook this low cost development model by investigating and reinstating the integrity of existing wells followed by side-tracking of existing wells over the last 12 months. This has led to production contribution from previously unproduced reservoirs within existing fields of Block 7, he added.
An exploration campaign will follow to target deeper horizons that have been producing in other parts of Oman.
HCF expects to add reasonable volumes of incremental oil and gas reserves in due course. There are immense development opportunities in Block 7 and HCF is well positioned to maximise the production of hydrocarbons from this block, the company said in a statement.
In addition to employment and business opportunities for a number of citizens and SMEs in Oman, HCF’s project will also contribute positively to government revenues from incremental oil production.