MUSCAT : The deal was signed by His Excellency Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, Ahmed Al Azkawi, CEO of OQEP, and Paul Weir, CEO of Genel Energy.

Under the terms of the agreement, OQEP, a subsidiary of OQ Group, will hold a 60 percent operating interest in the block, while Genel Energy will maintain a 40 percent stake as a non-operating partner.
The Karawan Concession spans an area of 5,632 square kilometres in the Al Wusta Governorate, approximately 600 kilometres south of Muscat. The site, located within the South Oman Salt Basin, is adjacent to existing production areas but has largely remained unexplored.

Over the next three years, the partners will invest $25 million to meet the minimum work obligations of the agreement’s first phase. This phase includes drilling new exploration wells, testing accessible existing wells, and acquiring 3D seismic data to further assess the area’s potential.

His Excellency Eng. Aufi highlighted that this agreement marks a crucial development in Oman’s efforts to expand its hydrocarbon exploration activities and increase reserves. He emphasized the importance of strategic collaborations like this one, which help maintain Oman’s competitive edge in the global energy market.

For OQEP, the agreement with Genel Energy represents a milestone in its ongoing growth. Ahmed Azkawi expressed excitement about the partnership, noting that it will help further solidify OQEP’s role in Oman’s energy sector and enhance the company’s operational capabilities.

Genel Energy’s CEO, Paul Weir, noted that Oman’s stable track record and favourable investment climate make it an ideal location for the company’s strategic diversification. The partnership, he said, will serve as a foundation for expanding Genel Energy’s portfolio and establishing a profitable presence in Oman.

The agreement, which is set to come into effect following the ratification of a Royal Decree, marks the beginning of what is expected to be a productive collaboration aimed at boosting Oman’s hydrocarbon reserves and ensuring the sustainability of its oil and gas production for years to come.

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