Tethys Oil AB will acquire a 20% interest in the exploration and production (E&P) license in Biyaq Oil Field Services covering Block 56 in onshore Oman, according to Pipeline Oil and Gas News.
Tethys Oil will pay Biyaq $9.5 million for the interest, of which a large proportion is expected to be recoverable from future production in the event of a commercial discovery.
Eleven wells have been drilled in Block 56, but none have been confirmed to be commercial. Three of these wells were successfully drilled by the current operator and a work program to test the three wells is currently being prepared.
“We are delighted to announce this opportunity to increase our Omani portfolio of assets with an interest in Block 56. The Block is an appraisal opportunity with excellent exploration potential in an area where Tethys Oil’s knowledge and experience will eminently complement the work of the current partnership. We look forward to be part of what promises to be an exciting future for Block 56,” said Magnus Nordin, managing director of Tethys Oil AB.