Majan Energy wins ESPA contract for ultra-heavy oilfield in Oman
Company will work with partners on several tasks and will invest up to $20m in the process
An exploration and production sharing agreement (ESPA) has been inked between Oman’s Ministry of Energy and Minerals and Majan Energy. The deal provides the latter concessions to develop Block 71, which comprises some 282sqkm.
As per the terms of the deal, Majan Energy will conduct geological and geophysical studies, drill appraisal and pilot wells and use enhanced oil recovery (EOR) to evaluate and produce the ultra-heavy crude in the Habhab field.
According to a statement by the Oman News Agency (ONA), the agreement was signed on behalf of the government by Dr Mohammed Hamad al-Rumhy, Minister of Energy and Minerals (MEM), and Eyhab al-Haj, chairman of Majan Energy.
Dr Salman Mohammed Al-Shidi, director general of Oil and Gas Investments Affairs at MEM stated that the Habhab oilfield of Block 71 is a promising reservoir, which the company will take three to five years to explore, using new technologies. He also pointed out that Majan Energy will work with partners from China to use the latest technology, and that the company will invest $15-20m in its tasks, including the drilling of wells.
