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The partner group for Block 56 consists of Tethys Oil (65% operator), Biyaq Oilfield Services (25%), Medco Arabia (5%), and Intaj LLC (5%)
Muscat – Swedish energy firm Tethys Oil announced that Oman’s Ministry of Energy and Minerals (MEM) has approved its Field Development Plan (FDP) for Block 56.
With the approval, Block 56 has been declared commercial, and the exploration and production sharing agreement (EPSA) has been extended by 20 years, through 2044, Tethys Oil said in a statement.
‘The FDP and Declaration of Commerciality are the first of their kind for Tethys Oil as an operator, marking a significant milestone for both the company and the Block 56 partnership,’ Tethys Oil added.
The approved FDP includes the development of the Al Jumd, Menna, and Sarha discoveries, along with additional exploration potential identified through several leads and prospects. Development activities are scheduled to begin in 2025, according to Tethys Oil.
The partner group for Block 56 consists of Tethys Oil (65% operator), Biyaq Oilfield Services (25%), Medco Arabia (5%), and Intaj LLC (5%).
Magnus Nordin, Managing Director of Tethys Oil, said, “MEM’s approval of the Block 56 FDP is a major milestone for Tethys Oil and our partners. We are now looking forward to unlocking the potential of the block over the coming years. I would like to thank the Ministry of Energy and Minerals for their cooperation and support, as well as our team and partners – Biyaq Oilfield Services, Medco Arabia, and Intaj LLC – for their valuable contributions.”
In a statement to Oman News Agency, MEM noted that the Block 56 FDP involves the development of fields in the Wilayats of Shalim, Al-Halaniyat Islands, and Al-Jazir, including the Al Jumd, Menna, and Sarha fields. The focus will be on exploring and extracting oil from the Khalatah and Karim formations, within an area spanning 5,808 square kilometers.
The ministry also highlighted that the project will include further exploration activities at several promising sites, offering significant opportunities for future growth. Investment in the area is expected to exceed $240mn in the near term, with the potential for increased investments as exploration and evaluation activities progress in the next phase.
Tethys Oil submitted its FDP for Block 56, within the Mudawrat Concession, to the Ministry of Energy and Minerals for review and approval in June this year.
‘The development will involve drilling several horizontal development wells. The surface development concept is designed to accommodate future needs and will initially adopt a fast-track option, utilising export via neighboring operators, as demonstrated during the Al Jumd extended well test in 2023,’ Tethys Oil noted in June.
The Field Development Plan also outlines a continued exploration strategy for Block 56, targeting additional leads and prospects.
Tethys Oil is focused on oil exploration and production in onshore regions with known oil discoveries. The company’s core area is Oman, where it holds interests in Blocks 3&4, 49, 56, and 58. |
