The Ministry of Oil and Gas has signed a new Exploration and Production Sharing Agreement (EPSA) with Hydrocarbon Finder today. The agreement was signed between His Excellency Dr Mohammed bin Hamad Al Rumhy, Minister of Oil and Gas and Suleiman Mohammed Yahya Al Adawi the Chairman of the company.

Under the agreement the company will explore and produce Hydrocarbon in Block 7, which occupies an area of 2,331 km2 and located in Governorate of Al-Wasta. The Block is one of the producing blocks in Oman with three oil fields that added oil production in Oman during the past decade.

The commitments of the company under this agreement are to reinterpret the existing data, acquire 3D seismic surveys, perform studies, operational support and drilling a number of development and exploration wells.

The Ministry of Oil and Gas said that the company’s efforts would be crowned with success in discovering hydrocarbons, which will increase reserves and production rates in the country.

Oman is highly dependent on its hydrocarbons sector. In 2014, Oman’s hydrocarbons sector accounted for 84 per cent of government revenues and 47 per cent of Oman’s gross domestic product, according to the Central Bank of Oman.

In 2015, Oman Oil Company Exploration and Production (OOCEP) reported continued progress in exploring the hydrocarbon potential of its Block 60 concession in central Oman. Block 60, a roughly 1,580-sq km concession is home to the prolific Abu Butabul tight gas field, which was successfully brought into operation in 2014 — the culmination of a $1.2 billion investment by OOCEP in this landmark project.