Page 10 - MEOG Week 12 2023

MEOG PROJECTS & COMPANIES MEOG

Maha kicks off Block 70

production tests in Oman

OMAN SWEDISH explorer Maha Energy this week Maha was awarded a 100% stake in the
announced the start of production testing at 639-square km block by the Sultanate’s Ministry
Block 70 onshore Oman as part of an eight-well of Energy and Minerals in September 2020 fol-
drilling campaign. lowing months of speculation.
In a press release, the company said it had The EPSA was awarded with an initial explo-
started with the Mafraq-9 well, with new wells ration period of three years and with an optional
to be added to the test system every two weeks extension period of another three years. Should
following its completion with PCP pumps. a commercial discovery be made, this can be
Maha added that oil produced from the wells extended into a 15-year production licence,
would be transported in heated trucks to third- with an optional five-year extension, while the
party facilities for further processing onwards state oil firm OQ has the right to acquire a 30%
transportation via Oman’s pipeline network. interest.
Preliminary information about crude quality The Mafraq field has been estimated to con-
and flow rates are expected to be made public by tain 185-280mn barrels of original oil in place
the end of May. (OIP), though Maha’s latest reports suggest a far
The news follows the signing of a joint oper- more conservative combined proven plus prob-
ating agreement for the Block 70 between Maha able (2P) reserves and 2C resources figure of
and local firm Mafraq Energy, which farmed 33.41mn barrels as of December 31, 2021.
into the concession last year. During the EPSA’s initial period, the parties
Maha operates Block 70 with a 65% share- are committed to carry out geological studies,
holding, while Mafraq holds the remainder fol- seismic reprocessing and well drilling. In 2020,
lowing its August farm-in to the exploration and Maha said it had planned for a phased appraisal
production-sharing agreement (EPSA), with and development approach and an “initial com-
that deal requiring the Omani firm to reimburse mitted work programme investment estimated
Maha for its “prorated share of all past costs, at approximately $14.6mn”.
including the signature bonus [and …] its share These investments cover the exploration
of all future expenditures on Block 70.” phase of the field’s development, with a further
The licence contains the Mafraq heavy oil- $31.8mn of planned spend to increase output to
field, which was discovered by state-backed 3,000 barrels per day (bpd) from 2024 onwards,
Petroleum Development Oman (PDO) in 1988. pending results.
Between then and 2010, the field was further The company has also noted that under a pre-
delineated by four wells and 3D seismic in stages, vious operator, Mafraq tested at 15,700 bpd of
but never developed owing to low oil prices and heavy oil from a single well over a 23-day well-
the high cost of production. test in 1991.™

P10 www. NEWSBASE .com Week 12 22•March•2023