OQEP, Genel Energy to develop Block 54 in Oman

12/03/2025 04:47 AST

Oman's Ministry of Energy and Minerals has entered into an Exploration and Production Sharing Agreement (EPSA) with OQ Exploration and Production (OQEP) and Genel Energy to develop Concession Block 54 in the sultanate.

Block 54, known as the 'Karawan Concession', spans an area of 5,632 sqkm in Al Wusta Governorate. The agreement was signed by H E Eng Salim Nasser al Aufi, Minister of Energy and Minerals, Ahmed al Azkawi, CEO of OQEP, and Paul Weir, CEO of Genel Energy.

Under the terms of the agreement, OQEP will hold a 60% operating interest in Block 54, while Genel Energy will retain the remaining 40% as a non-operating partner.

The initial phase of the agreement, lasting three years, will involve investments of up to $25mn. This will include the execution of 3D seismic surveys, the drilling of exploration wells, and the re-evaluation of existing wells.

The agreement will come into effect upon the promulgation of a Royal Decree ratifying its terms.

H E Aufi said, "The execution of this agreement marks a pivotal step in Oman's efforts to enhance hydrocarbon exploration and development. Through the expansion of exploration activities in concession areas, in collaboration with OQEP and Genel Energy, we reaffirm our steadfast commitment to increasing hydrocarbon reserves and ensuring sustained production. This initiative reinforces Oman's appeal as a prime investment hub for the energy sector, underpinned by a competitive environment that offers unparalleled opportunities for leading international companies."

He added, "The development of Block 54 is a testament to our ambitious strategy to explore new frontiers and optimise the use 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 making a significant contribution to the national economy."

Azkawi said, "With the signing of EPSA for Block 54, OQEP demonstrates its unwavering commitment to leveraging our substantial expertise to drive further growth. We are delighted to collaborate with Genel Energy. This partnership solidifies OQEP's achievements and integral contributions to Oman's upstream sector. The incorporation of Block 54 as our fourth operated asset, in partnership with a leading international player, validates OQEP's robust operational capabilities. We extend our sincere appreciation to the Ministry of Energy and Minerals for this opportunity and their trust in OQEP, and we are eager to foster a successful and enduring partnership with Genel Energy."

Paul Weir said, "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 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 presence in Oman, and diversifying our cash generation," he added.

Muscat Daily