(Alliance News) - Genel Energy PLC on Monday said it has signed an agreement to acquire a 40% participating interest in Block 54, an onshore exploration and production concession in Oman, as part of a partnership with OQ Exploration & Production SAOG.
The oil & gas company with production assets in the Kurdistan region said the block, known as the Karawan concession, covers 5,632 square kilometres in the Al Wusta governorate, approximately 600 km south of Muscat. It is situated within the South Oman Salt Basin, adjacent to existing production sites. Genel described the area as largely underexplored but with significant resource potential.
Under the agreement, Oman's OQEP will retain a 60% interest and act as the operator of the licence. The companies expect to invest approximately USD25 million over the three-year initial phase, which will include testing existing wells, drilling, and conducting 3D seismic surveys. Genel will provide a partial carry of OQEP's costs during this phase.
Chief Executive Paul Weir said the deal marks a "strategic diversification" for Genel, expanding its footprint beyond the Kurdistan region of Iraq into a jurisdiction with a "stable" regulatory environment and a growing oil and gas sector.
"We identified Oman some time ago as a preferred jurisdiction for geographical diversification... It is therefore the ideal country for Genel to begin its strategic diversification, expand its portfolio, and invest capital," Weir said.
Shares in Genel Energy were down 1.1% at 61.00 pence in London on Monday afternoon.
By Eva Castanedo, Alliance News reporter
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