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MEOG PROJECTS & COMPANIES MEOG

EOG signs deal for Oman’s Block 36

OMAN US unconventionals specialist EOG Resources Research notes that the firm has a proven track
last week signed an exploration and produc- record of reducing well costs, with Eagle Ford
tion sharing agreement (EPSA) for Block 36 in well costs having been reduced from $8.5mn in
south-western Oman. 2013 to around $5.3mn this year.
Under the terms of the deal, by mid-2022, APEX was awarded the block in 2011 and
EOG will drill at least two exploratory wells farmed out a share to Norway’s DNO in 2013.
in the 18,556-square km onshore concession, Together, they shot 1,000 km of 2-D seismic as
which it has acquired from the local subsidiary well as reprocessing 4,000 km of legacy 2-D seis-
of Canada-based Allied Petroleum Exploration mic, then drilled a first well in May 2016. DNO
(APEX). The company brings a wealth of expe- exited the block in early 2017, with full owner-
rience of developing unconventional resources, ship returning to APEX, which previously esti-
which it will seek to apply to Oman’s complex mated the resource to be 50-300mn barrels.
geology. The Norwegian firm has exited four onshore
The agreement was signed by Oman’s Min- mainland blocks since 2015 – 8, 30, 31 and 36 –
ister of Energy and Minerals (MEM), Hamad in order to focus on core assets in Iraqi Kurdistan
al-Ruhmy and EOG’s CEO and chairman, Wil- and Norway.
liam R (Bill) Thomas. Meanwhile, for EOG the deal marks a signifi-
Al-Ruhmy said: “This agreement represents cant step in its diversification away from depend-
the next step for Oman to determine the resource ence on US shale assets, with CEO Thomas
potential of the Rub Al Khali Basin. We are saying in early September that he does not
pleased to be partner with EOG Resources, the anticipate American oil production to recover to
industry leader of horizontal oil and natural gas pre-pandemic levels.
exploration and technology, to assess the techni- The company currently holds assets in the
cal and economic potential of the region.” US, China and Trinidad and Tobago and the
Meanwhile, Thomas said: “We are pleased Oman deal was preceded by EOG’s application
with the opportunity to evaluate this oil-rich for membership of Indonesia’s Upstream Oil and
basin for potential horizontal development. Gas Special Regulatory Taskforce (SKK Migas)
We look forward to working alongside MEM to after a two-week work visit last year.
expand Oman’s oil resource potential.” The company is carrying out a two-year
EOG has more than 4,500 premium wells that study alongside SKK Migas and the Indonesian
are capable of generating more than 30% returns, government into Indonesia’s unconventional
even with West Texas Intermediate (WTI) crude resource potential, which is expected to be con-
at $30 per barrel. Meanwhile, Zacks Equity cluded in December.™

P10 www. NEWSBASE .com Week 38 23•September•2020