EOG Resources Awarded Oman Block 36
NYSE-listed EOG Resources Inc. has signed an Exploration & Production Sharing Agreement (EPSA) with Oman’s Ministry of Oil & Gas, pursuant to which the company has been awarded exploration and production rights for Block 36 located onshore in the Rub al Khali basin. The award follows the exit of Allied Petroleum Exploration Inc. (APEX), the previous operator and holder of 100% working interest in the block.
Previously, in 2011, the block had been awarded to APEX. Subsequently, in 2013, APEX had concluded a farm-out agreement with DNO ASA, pursuant to which DNO had acquired a 75% operated interest in the block, in exchange for funding the cost of acquisition of new 2D seismic data, reprocessing existing seismic data and drilling of 2 exploration wells. After investing more than US$30.0 million in exploration costs, DNO withdrew from the block in 2017. Following the withdrawal of DNO, APEX undertook an unsuccessful farm-out process to identify a partner to join in the next stage of exploration of Block 36, which included drilling of 2 wells in late 2019 or early 2020.
Block 36 covers an area of 18,556 sq. km located in Dhofar Governorate in southern Oman, located alond the border with Saudi Arabia and Yemen. The block contains the Atina and SE Burkanah prospects along with a number of additional leads that are together estimated to contain 50 to 300 million barrels (MMbbls) of oil. EOG’s work commitments include drilling two exploration wells by mid-2022 during the initial three-year phase of the license.
Houston-based EOG is engaged in the exploration, production and development of oil and natural gas assets in Texas, New Mexico, Oklahoma, North Dakota, Utah and Wyoming in the United States. In addition, the company also operates internationally in Canada, China, Trinidad & Tobago, Oman and the UK.