Page 15 - NorthAmOil Week 38

NorthAmOil PROJECTS & COMPANIES NorthAmOil

EOG hopes to
apply its experience
of developing
unconventional
resources in the US
to Oman’s complex
geology.

EOG signs deal for Oman’s Block 36

US-OMAN US unconventionals specialist EOG Resources Zacks Equity Research notes that the firm has a
last week signed an exploration and produc- proven track record of reducing well costs, with
tion sharing agreement (EPSA) for Block 36 in Eagle Ford well costs having been reduced from
south-western Oman. $8.5mn in 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- For EOG the
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 deal marks a
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 significant step in
al-Ruhmy and EOG’s CEO and chairman, Wil- and Norway.
liam R (Bill) Thomas. Meanwhile, for EOG the deal marks a signifi- its diversification
Al-Ruhmy said: “This agreement repre- cant step in its diversification away from depend- away from
sents the next step for Oman to determine the ence on US shale assets, with CEO Thomas
resource potential of the Rub Al Khali Basin. We saying in early September that he does not antic- dependence on
are pleased to be partner with EOG Resources, ipate American oil production to recover to
the industry leader of horizontal oil and natu- pre-pandemic levels. US shale assets.
ral gas exploration and technology, to assess the The company currently holds assets in the
technical 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 study alongside SKK Migas and the Indonesian
that are capable of generating more than 30% government into Indonesia’s unconventional
returns, even with West Texas Intermediate resource potential, which is expected to be con-
(WTI) crude at $30 per barrel. Meanwhile, cluded in December.™

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