The Omani Ministry of Oil and Gas has signed two new exploration and production sharing agreements (ESPA) worth $65 billion to explore and develop the onshore concession blocks 51 and 65, Times of Oman reported.

The agreements were signed by oil and gas minister Mohamed Al Rumhy and Occidental of Oman (OO) for the concession block 51, which covers an area of 10,133 square kilometers in the Al Dakhliya and North Sharqiyah provinces.

The second agreement for the 1,230 square kilometer block 65 – situated in Al Dhahira province – is a joint venture with OO and Oman Oil Company Exploration and Production (OOCEP).

The agreements will enable 14 wells to be drilled across both blocks: nine wells in block 65 and five wells in block 51 during the two phases.

The agreements will enable 14 wells to be drilled across both blocks: nine wells in block 65 and five wells in block 51 during the two phases.

“The concession Blocks 51 and 65 will be drilled for the exploration of both crude oil and gas however, Block 51…has more possibility of gas,” Salman Al Shihi, Director General of the Management of Petroleum Investment at the Ministry of Oil and Gas, told Times of Oman.

“The total investment signed today of $65 million will be utilised over a period of six years. However, $38 million is allotted solely for phase 1 for the duration of three years and the remaining amount will be utilised for phase 2, again stretched over a period of three years, after seeing how successful they are in phase 1,” Al Shihi added.