Oman's oil and gas ministry has signed an exploration and production sharing agreement (EPSA) with Swedish energy company Tethys Oil for an initial three-year exploration period, the company announced on Sunday.
The Block 58 onshore Oman is adjacent to Tethys Oil鈥檚 operated exploration license Block 49, Tethys Oil said in a statement.
鈥淭ethys Oil through its wholly-owned subsidiary Tethys Oil Qatbeet Limited will be the operator of the block and hold a 100% license interest,鈥� the statement read.
The company said the agreement may be extended for another three-year period.
鈥淚n case of a commercial oil or gas discovery, the EPSA will be transformed into a 15-year production license which can be extended for another five years,鈥� it said, adding that in case of any commercial discoveries, an Oman government company would have the right to acquire up to a 30% interest in the block against refunding of past expenditure.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr