Monday 10 / March / 2025
Muscat: The Ministry of Energy and Minerals has entered into an Exploration and Production Sharing Agreement (EPSA) with OQEP and Genel Energy to develop Concession Area 54, known as the "Karawan Concession," spanning an area of 5,632 square kilometers in Al Wusta Governorate. The agreement was signed by His Excellency Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, Mr. Ahmed Al Azkawi, CEO of OQEP, and Mr. Paul Weir, CEO of Genel Energy.
Pursuant to the agreement, OQEP shall maintain a 60% operating interest, while Genel Energy shall retain the remaining 40% as a non-operating partner. The initial phase of the agreement, spanning three years, will involve investments of up to $25 million, which include the execution of 3D seismic surveys, drilling of exploration wells, and the re-evaluation of existing wells. The agreement shall enter into force upon the promulgation of a Royal Decree ratifying its terms.
On this occasion, His Excellency Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, stated: "The execution of this agreement signifies a pivotal step in the Sultanate of Oman's endeavor to bolster hydrocarbon exploration and development. Through the expansion of exploration activities in concession areas, in collaboration with OQEP and Genel Energy, we reaffirm our steadfast dedication to increasing hydrocarbon reserves and ensuring sustained production. This initiative reinforces Oman's attractiveness as a prime investment hub for the energy sector, underpinned by a competitive environment that presents unparalleled opportunities for leading international companies. The development of Area 54 is a testament to our ambitious strategy to explore new frontiers and optimize the utilization of our natural resources, building upon OQEP's proven track record, notably exemplified by the substantial production growth in the Bisat field. We are confident that this agreement will deliver tangible outcomes, sustaining oil and gas production and significantly contributing to the national economy."
Commenting on this, Ahmed Al Azkawi, CEO of OQEP, said: "Signing the Exploration & Production Sharing Agreement for Block-54 underscores OQEP’s commitment to leveraging our extensive expertise in pursuit of growth opportunities. We are excited to partner with an experienced international company like Genel Energy. This partnership exemplifies OQEP’s accomplishments and contributions to Oman’s upstream sector. Adding Block-54 as our fourth operated asset in collaboration with an international partner is a testament to OQEP’s operational capabilities. We thank the Ministry of Energy and Minerals for the opportunity and their trust in OQEP and look forward to embarking on a fruitful partnership with Genel Energy."
Commenting on the agreement, Paul Weir, CEO of Genel Energy, stated: "We identified Oman some time ago as a preferred jurisdiction for geographical diversification, with its flawless track record and the significant steps it has taken in recent years to set its oil and gas sector up for an exciting future. It is therefore the ideal country for Genel to begin its strategic diversification, expand its portfolio and invest capital. We are delighted to be partnering with OQEP and the Ministry of Energy and Minerals of the Sultanate of Oman on this exciting opportunity and look forward to working together to unlock and expand this contingent resource. We see this entry as an important first step towards achieving our strategic goal of diversification, establishing a significant and profitable footprint in Oman, and diversifying our cash generation."
