Oman Daily Observer reported that Oman Oil Company Exploration and Production and Reliance Exploration and Production DMCC of Dubai entered into a new phase of co-operation with the signing of Farm Out and Joint Operating Agreement. The agreement was signed by Mr Maqbool bin Ali Sultan minister of commerce and industry and Mr Atul Chandra director of REP DMCC.
Under the agreement the OOC EP will have 30% and 25% stakes in 18 and 41 blocks offshore Oman respectively and the 2 companies will commence joint exploration activities in the blocks.
Mr Maqbool expressed happiness and said that “I am very excited about the prospect OOC EP being involved in such a large activity in the Sea of Oman. Reliance Exploration and Production are a solid partner and I look forward to a long and mutually rewarding relationship in which we will explore the hydrocarbon treasures that lie below the waters of the Sea of Oman.”
Mr Atul Chandra said that it is a very good beginning between OOC EP and REP DMCC. It will lead towards greater co-operation between the two companies. The support we have had from OOC EP gives me a great deal of confidence that we can take on the challenges of offshore exploration operations in Sea of Oman. Oman offshore Blocks 18 and 41 located in the Sea of Oman were awarded to Reliance Industries Limited on the basis of Exploration and Production Sharing Agreements signed on March 12 and December 26 respectively. Under the terms of the EPSA’s, OOC EP will have future provision in both blocks to increase its participating interest up to 50%.
The Joint Operating Agreement provides a basis to establish a joint operating company to be managed by the two companies upon a commercial discovery being established in Block 18. Under the terms of the contract, both companies will co-develop a program to cover all aspects of Block 18 exploration and development including sub surface and surface studies and will closely monitor the work undertaken by partner companies.
OOC EP is a commercial company, wholly owned by Oman Oil Company SAOC. The company was formed in 2009 to manage existing OOC upstream assets and future investment opportunities in the hydrocarbon exploration and production both inside and outside Oman. Reliance Group is India's largest private sector enterprise, with businesses in energy, petrochemicals and the materials value chain.
Reliance Industries Limited lists among the Global Fortune 500 companies. Dubai based 100% subsidiary of RIL, REP DMCC is engaged in the business of exploration and production of natural resources; primarily oil and gas outside India. REP DMCC’s portfolio consists of 14 blocks spread across Oman, Yemen, Kurdistan Region of Iraq, East Timor, Peru, Australia and Colombia. In Oman, REP DMCC owns 2 blocks in Sohar Basin namely Block 18 and Block 41. Both the blocks are located offshore Batinah coast.
(Sourced from Oman Daily Observer)
