Under the Exploration & Production Sharing Agreement for Block 58, PTTEP will invest approximately US $38 million for two Exploration Phases in five years, encompassing geological and geophysical studies, seismic surveys and drilling. This new project will allow the company greater opportunity to maximize the value of PTTEP assets because expertise gained from being the operator of Block 44 will help to utilize resources more effectively, aiding in lowering overall investment costs, and ensuring that Block 58 development proceeds efficiently.
It was initially announced in April this year that PTTEP had been successful in bidding to obtain exploration and production rights for Block 58 in which PTTEP will hold 100% interest. Block 58 will be the second PTTEP project in Oman following on from the Oman 44 Project, for which PTTEP acquired the Exploration and Production rights in 2002 and scheduled to commence production mid 2006.
The onshore Block 58 covers an area of approximately 2,200 square kilometers. The block is located in south-west part of the Sultanate of Oman. Primary geological study for the Block indicates crude oil potential.
Mr. Maroot said "The signing of this Exploration and Production Sharing Agreement for Block 58 is another major advance in PTTEP's investment in the Sultanate of Oman, further strengthening our commitment in Oman and if the exploration of Block 58 proves as successful as Block 44 it will boost petroleum reserves and go towards increasing the energy stability of the nation."
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