Genel Energy Launches Appraisal Work on Block 54: Implications for Investors and Business Growth in Oman
MUSCAT, NOV 16 – UK-based upstream energy company Genel Energy has initiated appraisal work on Block 54, located in Oman’s Al Wusta Governorate.
Genel Energy, headquartered in London with a 40% non-operating interest, has partnered with OQ Exploration & Production (OQEP), the upstream division of OQ Group, which holds a 60% operating interest in the project. Earlier this year, the two companies signed an Exploration and Production Sharing Agreement (EPSA) with the Omani government to develop Block 54, also known as the Karawan Concession. This agreement marks Genel Energy’s first venture into Oman’s oil and gas sector.
Paul Weir, Chief Executive of Genel Energy, expressed optimism about their undertaking: “In Oman, on Block 54, we have started work towards testing the discovered resource. We are excited about the potential of the acreage and look forward to progressing activities there in the coming months,” he stated during an update on the company’s trading and operations for the third quarter and the first nine months of 2025.
The first phase of the joint venture’s three-year work plan includes testing the Batha West-1 (BW-1) discovery well. This will involve a borehole workover and the formal testing of multiple pay zones to confirm reservoir deliverability. Additionally, the initial phase encompasses the acquisition of 300 km² of 3D seismic data and the drilling of two vertical exploration wells.
Preparations for this work are in progress, with the workover expected to be completed by the end of this year, and test results anticipated around the end of Q1 2026. The results from the BW-1 well test will guide the location for the 3D seismic surveys and subsequent drilling activities, the company noted.
Spanning 5,632 km², Block 54 is situated within the South Oman Salt Basin, an area that has previously yielded commercial discoveries. This makes Block 54 a high-potential site and strategically significant for Oman’s onshore exploration efforts, especially as it remains relatively underexplored compared to neighboring productive regions.
Special Analysis by Omanet | Navigate Oman’s Market
The commencement of appraisal work by Genel Energy on Block 54 signals significant growth potential for Oman’s energy sector, attracting international investment and expertise. This move presents opportunities for local businesses to engage in supply chains and services tied to exploration and production activities. Smart investors should consider the long-term implications of resource development in relatively untapped areas, as success in this venture could pave the way for further exploration and bolstered economic growth in Oman.
