Eni and the state company Oman Oil Company Exploration and Production entered into an Exploration and Production Sharing Agreement (EPSA) for Block 47 with the government of Oman on Monday.
Eni this week also signed exploration deals for Sharjah onshore and Bahrain offshore concessions, following an acquisition for a majority stake in two of Abu Dhabi’s offshore exploration concessions, as it looks to boost its portfolio and expand regional footprint.
Oman’s Block 47 is located onshore in the Omani A’Dakhiliyah Governorate and covers an approximate area of 8,524 square kilometres.
The Block was awarded to Eni and OOCEP following their joint bid as part of the 2017 Oman Licensing Round. Following the deal, Eni will be the operator of block with a 90 per cent participating interest and OOCEP holds the remaining 10 per cent participating interest. Exploration operations are expected to start in 2019.
Additionally, Eni has signed with Oman’s Ministry of Oil & Gas and with BP a Head of Agreement (HoA) that sets up the principles for the acquisition of the Exploration and Production rights of Block 77 onshore.
Block 77, with a total area of almost 3,100 km2, is located in central Oman, 30 km east of the BP-operated Block 61 which contains the already-producing Khazzan gas project as well as the Ghazeer project, currently under development.
Under the Agreement, Eni and BP hold 50 per cent each with Eni acting as operator during the exploration phase. Following the signature of the HoA, the Exploration and Production Sharing Agreement (EPSA) will follow shortly. BP and Eni will now enter discussions with the Ministry to finalise details of the EPSA.
Bernard Looney, BP chief executive upstream said: “This would represent a further deepening of BP’s important position in Oman, building on our successful delivery of the major Khazzan project in 2017 and its second phase of development that is currently under construction. We look forward to continuing to explore and efficiently develop the country’s resources, working in close partnership with Eni and Oman to underpin our commitment to delivering long-term gas production for Oman.”
The signature of Block 47 EPSA and Block 77 HoA, represents a further step in Eni’s strategy to reinforce its presence in Oman and strengthen the collaboration with OOCEP, which is Eni’s partner also in Block 52.
Eni operates in Oman through its subsidiary Eni Oman. In the Middle East, Eni is also present in Egypt, the United Arab Emirates, Lebanon and Iraq.