EOG Resources has entered into an agreement with Tethys Oil’s subsidiary, Tethys Oil Monstasar, that sees EOG receive Tethys 50% working interest in Block 49 onshore Oman, according to the Oman Observer.
The Exploration and Production Sharing Agreement (EPSA) in Block 49 comprises 15,439 square km. This deal means that EOG will have the option to further assume operatorship of the block and increase its interest to 85% for any operation relating to unconventional hydrocarbon resources.
Tethys Oil’s Managing Director Magnus Nordin said, “We are delighted to have reached this agreement with one of the world’s foremost experts when it comes to unconventional hydrocarbons and very happy to welcome EOG as a partner in joining us in the pursuit of hydrocarbons in Block 49.”
The block comes with a range of pre-existing infrastructure including several thousand kilometers of 2D seismic grids, two recently acquired seismic surveys (2D and 3D), and nine exploration wells.
As part of the deal, EOG will refund all costs incurred on the block and fund the Thameen-1 exploration well, up to a combined amount of around $15 million.