Oman’s Ministry of Energy and Minerals signed an Exploration and Production Sharing Agreement (EPSA) with Majan Energy company for developing Block 71 in Habhab field on an area of 282 km², Oman news agency (ONA) reported.

The agreement was signed by the Minister of Energy and Minerals, Mohammed Hamad Al-Rumhy and the Chairman of Majan Energy, Eyhab Al-Haj.

According to the agreement terms, Majan will provide geological and geophysical studies, drill appraisal, pilot wells and use enhanced oil recovery (EOR) to evaluate and produce ultra-heavy crude in Habhab field.

The Director General of Oil and Gas Investments Affairs, MEM, said that the company will work with partners from China to use the latest technologies in the project, noting that Majan Energy allocated $15-20 million for the project’s investments.