Tethys Oil to pick up Oman block

Tethys Oil is set to acquire Block 49 onshore Oman, the Swedish independent announced on Thursday.

The exploration and production-sharing agreement, which is to be awarded on November 14, 2017, covers under-explored acreage with nine legacy wells, including Dauka-1, the sultanate’s first well dating back to 1955. While Tethys Oil will initially hold a 100% operated interest in the block, Oman’s NOC will reserve the right to purchase a 30% stake in the event of a commercial discovery, the statement added.

“We are extremely pleased with having been awarded Block 49 and would like to take this opportunity to express our sincere thanks to the government of Sultanate of Oman,” said Magnus Nordin, managing director of Tethys Oil. “The block covers an area with known oil shows, has a limited initial financial risk and offers several as yet immature but potentially very prolific play concepts.”

The news came on the same day as phase one of the Khazzan tight gas project in Oman, which came on stream in September, was officially inaugurated.