On 5 July 2020, Tethys Oil signed an Exploration & Production Sharing Agreement (EPSA) with the Omani Government for Block 58 (Qatbeet). The onshore block (4,557 sq km) is located in the Governorate of Dhofar in southern Oman and borders the companyâs existing exploration licence for Block 49 (Montasar). The EPSA has an initial three-year exploration period, with an optional extension period of another three years. It will become effective once it has been ratified by royal decree. In case a commercial discovery is made, the EPSA will be transformed in to a 15-year production licence, which can be extended for another five years. At the point of transformation to a production licence an Oman Government company has the right to acquire up to a 30% interest in the block against refunding of past expenditure.<P />The block has been awarded following the Sultanate's 2019 Licensing Round, which was launched in February 2019 and closed in May 2019. It was among a total of six blocks on offer, which are located in central and southern parts of the country. Around 50% of Block 58 (Qatbeet) covers an area that has recently been relinquished by Petroleum Development Oman (PDO), which is owned by the Government of Oman (60%), Shell (34%), Total (4%) and PTTEP (2%). PDO was obliged to relinquish the area due to statutory relinquishment rules. <P />Block 58 (Qatbeet) straddles the western flank of the South Oman Salt Basin and the Western Deformation Front. It is largely unexplored, with only a hand full of wells having been drilled within the block boundaries. At least two wells encountered hydrocarbon shows. The acreage is covered by 7,600km of 2D seismic and 1,100 sq km of 3D seismic data, which had been acquired by previous operators. Multiple play concepts are believed to exist within the block and several leads have been identified. Tethys Oilâs initial work commitments during the first exploration period include a 3D seismic acquisition campaign and drilling of two exploration wells.<P />Tethys Oil will operate Block 58 (Qatbeet) with a 100% interest through its wholly owned subsidiary Tethys Oil Qatbeet Ltd.
(Oman B) On 5 July 2020, Tethys Oil signed an Exploration & Production Sharing Agreement (EPSA) with the Omani Government for Block 58 (Qatbeet). The onshore block (4,557 sq km) is located in the Governorate of Dhofar in southern Oman and borders the companyâs existing exploration licence for Block 49 (Montasar). The EPSA has an initial three-year exploration period, with an optional extension period of another three years.