Qatar Petroleum takes 30 per cent stake in offshore Oman Block 52

The Government of the Sultanate of Oman, Oman Oil Company Exploration and Production LLC (OOCEP) and Eni Oman BV, a subsidiary of Eni, yesterday entered into an Exploration and Production Sharing Agreement (EPSA) for Block 52, located offshore Oman. The signing ceremony took place at the Ministry of Oil & Gas and was attended by the Minister of Oil and Gas of Oman, Dr Mohammed bin Hamad al Rumhy, Oman Oil Company SAOC’s CEO, Isam al Zadjali, Eni’s CEO, Claudio Descalzi and Qatar Petroleum’s President and CEO, Saad Sherida al Kaabi. Block 52 is an underexplored area with hydrocarbon potential located offshore in the southern region of Oman. The area extends from Al Wusta region towards the Dhofar region, encompassing the Hallaniyat islands. It covers a total area of approximately 90,760 sq.km with the water depth ranging from approximately 10m to 3,000m. Pursuant to the EPSA, Eni Oman BV is the Operator of Block 52. Eni Oman BV holds an 85 per cent stake, whilst its partner OOCEP holds the remaining 15 per cent stake in Block 52. Block 52 was awarded to Eni and OOCEP following an international bid round process launched in October 2016. During the same event, Eni and Qatar Petroleum signed an agreement for the assignment of 30 per cent interest in Block 52 to Qatar Petroleum. The assignment is subject to obtaining the required approvals from the Government of the Sultanate of Oman. Following the completion of the assignment, the Contractor under the EPSA will consist of affiliates of Eni with a 55 per cent stake, Qatar Petroleum with 30 per cent and OOCEP with 15 per cent.  Commenting on the EPSA , Isam al Zadjali, the CEO of Oman Oil Company SAOC (OOC) said, “The exploration of the area is part of our plans to contribute towards increasing the country’s hydrocarbon reserves and production potential; in turn realising further growth in Oman and strengthening the local economy. I am confident the collective experience of both companies will prove valuable in exploring the offshore Block 52.” “The signature of Block 52 EPSA represents an important milestone in Eni’s strategy to reinforce its presence in the Middle East region. We wish to establish with the Sultanate of Oman, which is a historical Oil & Gas producer in the region, a long-lasting relationship in the best tradition of Eni. It is also remarkable that the same day we are assigning a participating interest of Block 52 to QPI, to join our efforts with such a strong partner which is currently leading the LNG business worldwide”, commented Eni CEO, Claudio Descalzi. “Eni is a global company that has had recent successes in offshore exploration, namely Egypt, Mozambique, and Mexico. We are confident that together we can replicate such success in Block 52, an area which to date remains largely unexplored for potential reserves,” added Ayad al Balushi, Director of Finance at OOCEP. OOCEP is an Omani oil and gas company that was founded in 2009 and is a subsidiary of OOC, an investment company specialised in the energy sector and wholly owned by the Government of Oman. OOCEP currently operates three blocks in Oman (60, 42 & 48) and is a participant in a number of joint ventures, some of which are large scale projects in the Omani upstream landscape.