Oman’s E&P strategy with BP and Eni

How does your partnership with BP impact OOCEP’s operational capabilities and its development of onshore blocks in Oman?
Our investments seek to draw upon the country’s extensive experience within the industry while providing a platform for innovation and professional development. The announcement of the first production from Khazzan is a major milestone for the ongoing development of the energy industry in the country.
The partnership with BP represents a symbiotic collaboration that draws on our own capabilities and BP’s extensive knowledge and experience in developing challenging reservoirs on an international level. As the operator of Block 60, we have both contributed to and benefited from knowledge transfer with BP and were able to provide support in training their technicians. We also exchange data on a regular basis to enhance our operations.

What are the main implications of OOCEP’s recent USD 1-billion loan facility?
In 2016, we were recognised by Wood Mackenzie as the fastest-growing oil and gas company in the Middle East since 2015. In August 2017, we announced the successful signing of an approximately USD 1-billion loan instrument to finance our ongoing growth and expansion in E&P activities.
This transaction gathered significant attention from the banking and financing [community], and ended up being oversubscribed at 170 basis points over the Libor rate. This marks a sign of strong confidence in OOCEP’s strategy and future. We aim to generate sustainable growth through optimising our activities, including hydrocarbon recovery and developing new reserves.
This loan will be utilised to repay an existing loan from shareholders and finance the company’s activities and growth objectives, which encompass additional investment in Block 61.

How will the agreement with Eni for Block 52 affect the development of OOCEP’s offshore capabilities?
Eni has one of the strongest track records when it comes to offshore exploration and discoveries in pre-salt formations. As a leading global company with successes in offshore plays, most recently in Mexico, Mozambique and Egypt, it is an ideal partner for us. This block covers a total area of about 90,760 square kilometres, largely underexplored, that holds significant potential reserves.
We are a collaborative company by nature and we are looking forward to working actively with Eni over the coming months and years so that we can replicate their successes for Block 52.
We hope that the exploration of this block will add to Oman’s hydrocarbons reserves and its production potential.

What initiatives is OOCEP promoting to strengthen in-country value (ICV) and develop the local workforce?
We have a team of 282 people, a relatively small size for an E&P company, and each of us focuses on adding value. As an organisation, one of our main focuses is the training and development of our workforce. Recently, 30 graduates joined our company, and we are looking to develop them for the long term. We are providing six-month paid internships and hope to eventually incorporate them into our organisation.
In areas where we operate, we work closely with communities to generate opportunities to expand socioeconomic benefits on a local level. This has been seen recently through strategic projects such as the creation of an LPG bottling plant in Musandam, furthering our ongoing commitment to generate ICV and continue promoting investment opportunities.
OOCEP is committed to optimising ICV within the context of technical excellence and commercial attractiveness in the development and operation of hydrocarbon resources in Oman, and to requiring service contractors, subcontractors and suppliers of equipment and materials to contribute to this objective.
The adoption of the ICV objectives in OOCEP has delivered tangible benefits in the last few years, such as enhancing Omani business development, contributing to human capability development and stimulating increased productivity in the Omani economy.