Oman's oil and gas ministry has signed an exploration and production sharing agreement (EPSA) with Swedish energy company Tethys Oil for an initial three-year exploration period, the company announced on Sunday.
The Block 58 onshore Oman is adjacent to Tethys Oil’s operated exploration license Block 49, Tethys Oil said in a statement.
“Tethys Oil through its wholly-owned subsidiary Tethys Oil Qatbeet Limited will be the operator of the block and hold a 100% license interest,” the statement read.
The company said the agreement may be extended for another three-year period.
“In case of a commercial oil or gas discovery, the EPSA will be transformed into a 15-year production license which can be extended for another five years,” it said, adding that in case of any commercial discoveries, an Oman government company would have the right to acquire up to a 30% interest in the block against refunding of past expenditure.
By Sibel Morrow