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Oman oil block goes to Norwegian company

DNO ASA, the Norwegian oil and gas operator, has announced that its subsidiary DNO Oman Block 8 Limited has relinquished operatorship and participation in Oman Block 8 to Oman's Ministry of Oil and Gas (MOG) and the state-owned Oman Oil Company Exploration and Production LLC (OOCEP).

Offshore Block 8, which contains the Bukha and West Bukha fields, off the Musandam peninsula, produced an average of 4,458 barrels of oil equivalent per day during 2018. The handover follows the expiry of the 30-year commercial term of the Exploration and Production Sharing Agreement.

A handover ceremony was held in Muscat today in the presence of MOG Under-Secretary Salim Al Aufi, with representatives from DNO, MOG, OOCEP and licence partner LG International in attendance.

"Since inception, Block 8 has produced 35 million barrels of oil and 285 billion cubic feet of gas, generating the Sultanate of Oman about US$1 billion in total revenues," DNO's Managing Director Bjorn Dale said during the handover ceremony.

From tomorrow, 4th January, Block 8 will be operated by the Musandam Oil and Gas Company, fully-owned by OOCEP.

DNO held a 50 percent interest in the licence alongside LG International, which held the remaining 50 percent interest.

The company is one of the largest producers of oil in Iraq’s Kurdistan region and also holds licences in Norway, the United Kingdom and Yemen. It is currently engaged in a hostile takeover bid for UK-registered Faroe Petroleum, where it currently owns a 30 per cent stake.

The largest shareholder in Oslo-listed DNO is RAK Petroleum Holdings, which owns 40.45 per cent of the company.

DNO ASA is a Norway-based oil and gas operator focused on the Middle East and North Africa. Founded in 1971 and listed on the Oslo Stock Exchange, the company holds stakes in onshore and offshore licenses at various stages of exploration, development and production in the Kurdistan region of Iraq, Yemen, Oman, the United Arab Emirates, Tunisia and Somaliland. Its largest shareholder is UAE-based RAK Petroleum.

Source: WAM

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