EPSA Extended After Hydrocarbons Discovery in Oman’s Block 47: What It Means for Investors and Business Growth
MUSCAT, SEPTEMBER 22 — The partnership between Italian energy major ENI and OQ Exploration & Production (OQEP) of Oman has been granted a further six-month extension for Phase 1 of their Exploration and Production Sharing Agreement (EPSA) covering Block 47 in Al Dakhiliyah Governorate. This marks the second consecutive extension, following the discovery of hydrocarbons during the drilling of a key well within the 8,524 km² license area.
OQEP, a publicly-listed company holding a 10% stake in the block, announced in a disclosure to the Muscat Stock Exchange (MSX) that the new extension extends Phase 1 until March 24, 2025. The Ministry of Energy and Minerals had previously extended the phase’s validity beyond its original expiry date.
The extension allows ENI, the operator with a 90% interest, to complete post-well technical evaluations and develop a concrete strategy for Block 47, explained Mahmoud Al Hashmi, Acting CEO of OQEP, in the disclosure.
This development follows the Najid-1 exploration well, which was drilled to a depth of 4,788 meters by late July and showed promising gas indications in the Natih reservoir. Detailed analysis of the well data is currently underway.
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The extension of Phase 1 for Block 47’s Exploration and Production Sharing Agreement signals ongoing potential in Oman’s hydrocarbon sector, presenting a golden opportunity for businesses involved in energy and related services. However, the delay also suggests a period of technical evaluation and strategic formulation, which could pose risks for investors seeking immediate returns. Smart investors should closely monitor the outcomes of ENI’s post-well studies to gauge the block’s long-term viability and plan for strategic entry or partnership accordingly.
