International law firm CMS has advised Mazoon Petrogas SAOC (Petrogas), with the renewal of its exploration and production sharing agreement (EPSA) for the onshore Block 5 license in north-western Oman
The Block 5 interest is owned 50 per cent by Petrogas and 50 per cent by Mazoon BVI Limited, a subsidiary of China National Petroleum Corporation (CNPC).
Block 5 will continue to be operated by Daleel Petroleum LLC, a joint venture between Petrogas and CNPC.
The new agreement was signed in a ceremony by Mohammed Al Barwani on behalf of Petrogas and Mohammed bin Hamad al Rumhy, Oman’s minister of oil and gas, on behalf of the Omani government.
Established in 2002, Daleel is one of Oman’s leading oil-producing companies. It operates in Block 5, home to four vital oilfields with an area of 992sq km and holds expected recoverable reserves of around 200 mmbbl. This new EPSA agreement will remain in force for 15 years.
CMS partner and head of the Oman office, Ben Ewing, led the firm’s advice to Petrogas. Ben commented, “We are proud to have supported Petrogas on obtaining its EPSA renewal. This license will enable it to continue to expand its production activities and drive forward technological efficiencies to aid production.”
