Tethys Oil bags exploration rights for Block 58 onshore Oman

Tethys Oil, a Swedish energy company, has signed an exploration and production sharing agreement (EPSA) with the Omani government for Block 58 onshore Oman.

The block is located in southern Oman near the Swedish firm’s operated exploration licence Block 49.

Tethys Oil, through its fully-owned subsidiary Tethys Oil Qatbeet, will be the operator of Block 58 and will have a 100% license interest.

Located in the Dhofar Governorate, Block 58 is spread over an area of 4,557 km2. It is located on either side of the western flank of the South Oman Salt Basin and the Western Deformation Front.

According to Tethys Oil, a total of 7,600 km of 2D seismic and 1,100 km2 of 3D seismic data acquired by previous operators of the onshore Omani block have been made available to it along with raw logs and well reports from a couple of wells drilled within the block boundaries.

The two wells had intersected hydrocarbon shows.

Tethys Oil bags exploration rights for Block 58 onshore Oman. Image courtesy of OpenClipart-Vectors from Pixabay.

The Swedish energy company said that multiple play concepts are thought to exist within the block boundaries, which includes plays familiar to the company, with various leads identified.

Block 58’s EPSA covers an initial exploration period of three years and comes with an optional extension period of an additional three years.

In the event of a commercial oil or gas discovery, the EPSA will be converted into a 15-year production license which can be extended for five more years. Should there be a commercial hydrocarbon discovery, an Omani government company will hold the right to acquire up to a 30% stake in Block 58 after refunding past expenditure.

Tethys Oil said that the initial work commitments at the Omani block during the first period, call for a 3D seismic campaign and drilling of a couple of exploration wells.

Magnus Nordin – Tethys Oil Managing Director said: “We are very happy to have been given the opportunity to explore for hydrocarbons on Block 58. The signing of this EPSA represents another step in Tethys Oil’s strategy in Sultanate of Oman. I would like to take this opportunity to express our sincere thanks to the Government of the Sultanate of Oman for this exciting opportunity.”