Oman's oil ministry said Wednesday it signed an oil and gas exploration agreement with U.S. PetroTel Inc. as part of its plan to increase the sultanate's crude oil production.
Under the three-year agreement, PetroTel's Omani unit will explore for oil and natural gas in Blocks 39 and 67 located in Dhofar, the ministry said in a statement.
Oman, a producer outside the Organization of the Petroleum Exporting Countries, will not bear any financial costs during the exploration period, the ministry added.
The country's oil production and condensates increased by 4% to an average of 918,500 barrels per day in 2012, from a year earlier, while its natural-gas production rose 3.3% to 98.2 million cubic meters a day during the same period.
State-run Petroleum Development Oman, or PDO, which accounts for around 70% of the Sultanate's crude output, hopes to invest $11 billion until 2022 on 16 large oil projects, which will help increase its production by one billion barrels.
Copyright (c) 2012 Dow Jones & Company, Inc.
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