PetroTel Signs Exploration Agreement Offshore Oman

US based PetroTel has signed an Exploration and Production Agreement (EPSA) to explore hydrocarbons in Block 40 offshore Musandam Governorate in the north of Oman.

The 6,120 sq km block is PetroTel’s second in the Sultanate and preceded by the acquisition of the adjoining Block 17 under an EPSA concluded with the government in May 2009. As per the agreement, the company will be investing $35 million during the appraisal phase which will be followed by drilling.

Any hydrocarbons produced from the block will be processed at a new processing plant currently under development in the Musandam Governorate, Under-Secretary Nasser bin Khamis al Jashmi said.

Oman Oil Company Exploration and Production (OOCEP), the upstream subsidiary of the government-owned energy investment firm Oman Oil Company, is currently building the facility at an estimated cost of $600 million and the plant is expected to start working in 2013.

PetroTel plans to start drilling its first well on Block 17 - for which the company signed an EPSA two years ago and completed the assessment of the hydrocarbon potential of the 2,378 sq km concession, also located in Musandam.

"We have done very detailed geological mapping of Musandam onshore and found seven prospects.We find Oman very attractive and will continue to look at the country,' Chairman of PetroTel Oman Offshore Dr Anil Chopra said.