EOG Resources Signs Deal for Omani Block
New York-listed EOG Resources has signed an exploration and production sharing agreement with the government of Oman to explore for hydrocarbons in Block 36 in the southwest of the country, Oman News Agency (ONA) reported on September 16.
The block covers an area of 18,556 km2 extending across the Rub Al Khali basin of the southwest of the country. EOG plans to drill at least two exploration wells by mid-2022 as part of its commitment during the initial three-year phase of the licence, ONA said.
Block 36 was previously awarded to Allied Petroleum Exploration (Apex) in 2011. In September 2013, Apex concluded a farm-out agreement with the Norwegian DNO International. The first exploration well under the farm-out, Hayah-1, was drilled by DNO in May 2016 as a stratigraphic test in the previously undrilled western portion of the block, reaching a total depth of 3010 m.
DNO subsequently decided to withdraw, having invested more than $30mn in exploration. It returned 100% of the block to Apex, effective in early 2017.