Oman Oil and Gas Ministry, Medico Arabia and Intaj LLC sign exploration deals for Block 56 wells

Posted on 28th November 2014

The Ministry of Oil & Gas (MOG) on Thursday signed an exploration and production sharing agreement with Medco Arabia Ltd and local company Intaj LLC for Block 56, according to news reports in the Muscat Daily.

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Under the agreement, the Indonesian firm will explore for oil and natural gas in Block 56, which covers an area of 5,808 sq km in the Al Wusta governorate. Medco will work in two phases, of three years each, conducting geological and geophysical studies as well as drilling wells. If reserves are consequently found after the six-year period, the government will engage in a 25-year contract with the company focusing on production.

H E Salim al Aufi, Undersecretary at MOG, said Medco, which currently produces 20,000 barrels per day in PDO's Karim Small Fields, possesses the technical expertise for the work. "We are happy with the work they are doing with PDO,” he said.

"This [agreement] is a confirmation that we would like to expand our ties with Indonesian companies,” H E Aufi added.

H E Mohammed al Rumhi, Minister of Oil and Gas, signed the agreement with Lukman Mahfoed, director of Medco Arabia, and Said al Adawi, CEO of Intaj.

Speaking to reporters after the signing ceremony, H E Aufi said he was hopeful the OPEC meeting in Vienna on November 27 would play a role in combating the decline in oil prices.

Governments cannot determine oil prices. "We don't have influence over pricing. The market determines them,” he added.

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