DNO ASA, the Norwegian oil and gas operator, said its subsidiary DNO Oman Block 8 has relinquished operatorship and participation in a production block to Oman after the expiry of its license.
Sultanate of Oman's Ministry of Oil and Gas (MOG) and state-owned Oman Oil Company Exploration and Production LLC (OOCEP) took over the participation and operatorship of Oman Block 8, DNO said in a statement.
A handover ceremony was held in Muscat in the presence of MOG Undersecretary Salim Al Aufi, together with representatives from DNO, MOG, OOCEP and license partner LG International in attendance.
"Since inception, Block 8 has produced 35 million barrels of oil and 285 billion cubic feet of gas, generating the Sultanate of Oman about US$ 1 billion in total revenues," said DNO's managing director Bjørn Dale during the handover ceremony.
Offshore Block 8, which contains the Bukha and West Bukha fields, produced an average of 4,458 barrels of oil equivalent per day during 2018.
Effective 4 January 2019, with the expiry of the 30-year commercial term of the Exploration and Production Sharing Agreement, Block 8 will be operated by the Musandam Oil and Gas Company, fully-owned by OOCEP.
DNO held a 50 per cent interest in the license alongside LG International, which held the remaining 50 per cent interest.