Oman launches 2023 Licensing Round for three Oil & Gas blocks

MUSCAT: The Ministry of Energy and Minerals announced on 26th March 2023 the launch of its latest Licensing Round, which offers three onshore oil and gas concession areas for investment by local and international local companies. Submissions close on 25th June 2023, the Ministry said in a statement.

Brief details about the Blocks on offer are as follows:

BLOCK 15

Located within Oman’s northern oil province around 25 km southwest of the provincial town of Ibri, Block 15 is situated along the northeastern edge of a petroleum basin that has a similar geological setting to Shams, Wadi Rafash, and Anadarko’s Hafar fields. Tight gas is the predominant play within Block 15.?Within the tight gas play is an unconventional sub-play for the Natih E. This unit is a source interval and also a reservoir. Development of unconventional gas is only beginning in Oman and the Natih E has been recognized as a prime target across northern Oman.

Over its history, Block 15 has had several owners and it has also changed configuration. The primary owners over the years was Petroleum Development Oman. Other companies which have owned this block are: Hydrocarbon Finders Oman E & P, Tethys Oil (Oman) Limited, Novus Oman Limited, Indago Petroleum, and Conquest Exploration Oman Inc.

A total of four exploration wells, and one appraisal well, were drilled during 1993-2017. The presence of hydrocarbons was identified in the Naih and Shuiba formations. The first well Jebel Aswad-1 was drilled on the Jebel Aswad structure by Conquest Exploration Oman Inc. in 1993-1994. The Wadi Sayalah 1 well was the second well drilled by Conquest Exploration Oman Inc. in 1997. Jebel Aswad-2 appraisal well was drilled on the Jebel Aswad structure in 2008 by Tethys Oil. Wells Ataya 1H1&H2 were drilled by Hydrocarbon Finders Oman E & P in 2017.

BLOCK 36

Spread over 18,625 km2, Block 36 is located along Oman’s border with the Kingdom of Saudi Arabia and the Republic of Yemen. The block abuts the south-eastern edge of the Eastern Rub al Khali basin, one of the most prolific oil and gas basins in the world.?To the south of block, in neighboring Block 38, the Rub al Khali basin is terminated against the Ghudun high that runs from NE to SW and separates the Rub Al Khali from the Southern Oman Salt basin.

There are several petroleum systems in the Paleozoic and Mesozoic. Production in the Rub Al-Khali basin of Oman has predominantly been from the Permian and Silurian/Ordovician aged formations.

Over its history Block 36 has had several owners and it has also changed configuration. The primary owners over the years was Petroleum Development Oman. Other companies which have owned this block are: DNO, EOG Resources, Inc, and Phillips Petroleum Company.

The block has been explored with significant amount of 2D seismic about 15000 km. During 2014, DNO reprocessed over 2,500 km of data with CGG Muscat. Six explored wells have been drilled in the block with the first in 1959 and the last in 2021. The drilled wells have indications of the presence of a working petroleum system.

BLOCK 54

Block 54 covers a 5,627 km2 area and is located in a lightly drilled area - the Eastern Flank province situated between the easternmost edge of known salt in the South Oman Salt Basin and the Mesozoic and Palaeozoic outcrops found along the Huqf Axis. While there is a tertiary aged basin in the easternmost portion of the block, the most prospective portion appears to lie along the western edge of the concession due to its proximity to a known hydrocarbon system.

The block has been explored with 2D / 3D seismic. Nine exploration wells have been drilled in the block itself during 1982 -2010. The owners over the years were Petroleum Development Oman (PDO) and Occidental Petroleum Corporation (Oxy).

The nearest discovery was made in 1975 by PDO in Block 53, adjacent to this block’s eastern boundary. A giant heavy oil Mukhaizna field operated by Occidental Mukhaizna is producing nearly 120,000 barrels per day. Well Habhab-1 drilled in 1982 with as main objective a 40 km2 anticlinal structure at the Gharif level is located some 80 km NNE of Mukhaizna field. Heavy oil was discovered not only in the Lower Gharif and Al Khlata but also in Mirqat formation.

?

Source: Ministry of Energy and Minerals

Date: 26th March 2023