Oman’s Ministry of Energy and Minerals has signed an Exploration and Production Sharing Agreement (EPSA) with OQ Exploration and Production (OQEP) and Genel Energy to develop Concession Block 54 in Oman.

Oman’s Minister of Energy and Minerals, Salim Nasser al Aufi, stated that the execution of the agreement represents a pivotal step in Oman’s efforts to enhance hydrocarbon exploration and development.

“We are confident that this agreement will deliver tangible outcomes, sustaining oil and gas production and making a significant contribution to the national economy,” he said.

Block 54, known as the Karawan Concession, spans an area of 5,632 sq km in Al Wusta Governorate that is underexplored. The initial phase of the agreement, set to last three years with investments reaching up to $25 million, will include the execution of advanced 3D seismic surveys, the drilling of new exploration wells, and the re-evaluation of existing wells.

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.

Genel stated that it will provide a partial carry of OQEP’s 60% participating interest during the Initial Phase.

Both companies have formalized a Joint Operating Agreement (JOA) to streamline operations within Block-54. The agreements will enter into effect upon the issuance of a Royal Decree ratifying the EPSA.