Page 10 - MEOG Week 44

MEOG PROJECTS & COMPANIES MEOG

Tethys increases stake in Oman’s Block 56

OMAN OMAN-FOCUSED Swedish firm Tethys Oil had begun planning for a potential seismic cam-
announced last week that it has agreed terms on paign in the acreage. The exploration phase of
a deal that will see it acquire an additional stake the EPSA has been extended until 2023.
of 45% in the exploration and production-shar- The move further illustrates Tethys’ focus
ing agreement (EPSA) for Oman’s Block 56, on Oman, with the company having signed an
making it the operator. agreement with the Ministry of Energy and Min-
On October 28, the company said that it had erals for the Block 58 EPSA in Q2.
come to an agreement to buy the stake from This concession area is in the Dhofar Gov-
Indonesia’s Medco Energi for $5mn, with Tethys ernorate of south-west Oman, adjacent to the
also agreeing to carry $2mn of Medco’s future company’s 100% operated Block 49. Tethys will
expenditure in the block. The Indonesian com- operate and hold a 100% interest in Block 58 via
pany retains a share of 5%. Tethys added: “The its wholly owned subsidiary Tethys Oil Qatbeet.
agreement further includes additional consider- The block covers an area of 4,557 square km,
ation in the case of a declaration of commercial- spanning the western flank of the South Oman
ity under the terms of the licence.” Salt Basin and the Western Deformation Front.
Tethys has held an interest in Block 56 since During Q2, the company the company pro-
late last year, when it acquired a 20% stake from duced 10,597 barrels per day from Omani Blocks
Biyaq Oil Field Services for $9.5mn. 3 and 4, down from 13,032 bpd during Q1 and
The deal with Medco is subject to approval, from 12,881 bpd during 2Q2019. Despite the
but following this, the EPSA shareholder struc- relatively small reduction in production, Tethys
ture will comprise Tethys (65%, operator), Biyaq swung from a $12.1mn profit in Q1 to a loss of
(25%), Intaj (5%) and Medco (5%). $3.9mn in Q2 following a $28.8 per barrel drop
The 5,808-square km concession in in average selling price. Swedish firms have done
south-eastern Oman lies around 200 km south well in Oman of late, with Maha Energy awarded
of Blocks 3 and 4, in which Tethys holds a stake 100% of the EPSA for Block 70 in Central Oman
of 30%. The firm noted that testing at previously in late September. Block 70 was one of five con-
drilled wells during Q1 confirmed the presence cessions included in the country’s 2019 licensing
of an active petroleum system containing 20-25 round. The block is in the oil producing Ghaba
degrees API medium viscosity crude, although Salt Basin and is home to the undeveloped
it added that “the commercial viability is yet to Mafraq heavy oil field. Like the other licences
be determined”. included in the auction, it was carved out of
In its Q2 results, the Swedish firm said that it PDO’s 900,000-square km Block 6.™

TENDERS

QP selects Honeywell for LNG expansion

QATAR QATAR Petroleum (QP) has selected Honeywell simulation, multi-variable process control, pipe-
to be the main instrument and control contrac- lines management, instrument asset manage-
tor for its North Field East (NFE) project. The ment, alarm management and plant operation
project is being developed by Qatargas on QP’s information systems. In addition, its cybersecu-
behalf to underpin Qatar’s expansion of lique- rity technology and services will be used to help
faction capacity by 43% from 77mn tonnes per safeguard the project infrastructure.
year to 110mn tpy. Honeywell also said its Industrial Internet of
The project entails the development of four Things-enabled Lean Execution for Automa-
new LNG mega-trains as well as associated facil- tion Projects (LEAP) methodology would be
ities. Production from the expansion is due to deployed. The LEAP approach provides more
start in 2025. predictable construction costs and enables
Honeywell said in an October 22 statement remote project engineering from anywhere in
that its technology would provide the NFE pro- the world, it added. Honeywell said it would
ject with “streamlined automation and safety implement smart junction boxes (SJB) technol-
systems while reducing schedule risks and ogy for control and safety systems to reduce the
delivering [capital expenditure] efficiencies”. The number of instrumentation cabinets compared
company’s instrumentation and control systems with previous technologies. It expects this to
will be integrated into the NFE main control allow for faster project execution and reduced
building in Ras Laffan Industrial City (RLIC) installation costs.
and instrument technical rooms (ITRs) will be “We’re delighted to play a central role in the
located throughout the process area, it said. largest and most ambitious LNG project in the
The system will include Honeywell’s con- world,” stated Honeywell’s vice-president of
trol and safety solutions, operator training global strategic projects, Tarek Nahl.™

P10 www. NEWSBASE .com Week 44 04•November•2020