Swedish international upstream oil and gas company Maha Energy, through its subsidiary Maha Energy (Oman), has entered into a farmout agreement with Omani firm Mafraq Energy for Block 70 in Sultanate.
Maha Energy will reduce its participating interest in the Block 70 exploration and production sharing agreement (EPSA) from 100 percent to 65 percent.
“Maha Energy has decided to reduce its working interest in the onshore oil-bearing Block 70 in Oman by bringing in a strategic Omani partner. The agreement requires Mafraq Energy to reimburse Maha Energy for their prorated share of all past costs including the signature bonus,” the company said.
Mafraq Energy will also be required to pay its share of all future expenditures on Block 70. The company said in a statement that Maha Energy will continue to be the Operator of the Block. The agreement is subject to government approvals in Oman.
Mr. Jonas Lindvall, CEO of Maha Energy, noted that, “We are delighted to have Mafraq Energy join us on Block 70. Mafraq Energy brings extensive experience in the Mafraq field and the surrounding areas in Oman. The fact that Mafraq Energy joins us is perhaps the best evidence yet of the future potential of the Mafraq field.”
“We are pleased and honored to join Maha Energy to commercialize Oman’s national resources. The farmout arrangement is also completely aligned with the realization of the Oman 2040 Vision’s ‘Growing the Private Sector’, and we are proud to be doing our part,” commented Mr. Talal al Subhi, director of Mafraq Energy.
