The Ministry of Energy and Minerals today signed a new Exploration and Production Sharing Agreement (EPSA) with Majan Energy, offering the firm concession to develop Block 71, a stretch of 282 square kilometres.
The agreement was signed on behalf of the government by Dr. Mohammed Hamad al-Rumhy, Minister of Energy and Minerals (MEM), and Eyhab al-Haj, Chairman, Majan Energy LLC.
The company will conduct geological and geophysical studies, drill appraisal and pilot wells and use enhanced oil recovery (EOR) to evaluate and produce the ultra-heavy crude in the Habhab field.
Dr. Salman Mohammed al-Shidi, Director General of Oil and Gas Investments Affairs, MEM, said that Habhab oilfield of Block 71 is a promising reservoir, which the company will take three to five years to explore, using new technologies.
In a statement to the Oman News Agency (ONA), al-Shidi said that Majan Energy will work with partners from China to use the latest technology, and that the company will invest US$15-20mn to conduct its tasks, including the drilling of wells.
The Ministry of Energy and Minerals hopes that the company will meet with success in its endeavours to discover hydrocarbons, which will boost reserves and production rates in the country.
Majan Energy’s Eyhab al-Haj expressed his delight over the trust vested on the company to develop Habhab oilfield.