The Omani Ministry of Oil and Gas signed a six year exploration and production (E&P) agreement with Canada-based Allied Petroleum Exploration Inc (APEX). The development of Block 36, in the Dhofar region, is worth US$18mn.
HE Dr Mohammed bin Hamad al Rumhi, Minister of Oil and Gas, signed the agreement with Achour Jamal Madi, president, APEX.
APEX will perform a work programme that includes acquisition of new seismic data, along with reprocessing of old seismic data and drilling of wells based on the data evaluation,
"The exploration will be for six years and under our obligation we will gather the data which is the first step towards drilling. The block is spread over 18,000 sq km and work will start immediately," Michael Volcko, CEO, APEX said.
Volcko is optimistic about exploration prospects with regard to Block 36. “We think it is frontier exploration. Although not many wells have been drilled there, we do think it is prospective because it is the part of the Rub al Khali basin of the Arabian Peninsula.”
More than 20 international firms are currently exploring for oil and gas in the Sultanate under EPSAs.
