Hungarian oil group MOL is to invest $30 million in Oman after securing exploration and production rights in the Sultanate.
MOL signed an exploration and production agreement Sunday for onshore block 66 in the south-west Dhofar region of Oman, running down the Sultanate’s border with Saudi Arabia.
MOL is committed to reprocessing old seismic, acquiring new 2D & 3D seismic and drilling exploration wells during exploration periods, according to Oman's Oil Ministry.
According to a company statement, Sandor Fasimon, executive vice-president of MOL Group, says the field contains 200 million barrels of oil. While the minimum amount of investment mandated is $30 million, MOL may invest more, according to the Times of Oman.
Block 66 is MOL's second concession in Oman, after block 43B, which was signed in 2006, according to the Times.
"Oman is a key target country for MOL in the Middle East from multiple aspects. The Oman Oil Company is our important strategic partner. In addition, we have been conducting exploration activities in the country since 2006 in Block 43b, where we plan to spud our first exploration well soon," commented Fasimon.
"Our aim is to build up a sizeable exploration and production portfolio, in line with MOL’s organic growth strategy. To achieve this, we are continuously seeking new investment opportunities," he added.
Oman is in the middle of a drive for increased oil production, reinvigorated by sustained oil prices and the application of cutting edge reservoir management and enhanced oil recovery techniques.
The Sultanate has announced that it will sign another exploration and production contract for a block in the Dhofar region this month, followed by another four in October. The adoption of production sharing contracts is helping to incentivise companies to commit initial capital.