CNPC and MB Petroleum To Increase Production in Oman Onshore Field
MB Petroleum and its new partner, CNPC, will invest a total of $220 million over the next four years to achieve a projected five-fold increase in oil production at the Sultanate's Mezoon-5 oil concession.
Mohammed Al Barwani, chairman and CEO of the MB group of companies, said the recently acquired onshore Mezoon-5 block in Wadi Aswad is seeking to boost production from the current 5,000 bpd to 25,000 bpd. Barwani said part of the $220 million required for developing the concession in the next four years would be met through the income generated from the concession while the joint venture partners - CNPC and MP Petroleum Group - would each be investing $27 million initially.
The concession, acquired by MP Petrogas from Japan Petroleum Explorations Company and Japan National Oil Corp in April for $67 million, has proven oil reserves of 120 million bpd. A 50 percent stake in the acquisition has since been bought by CNPC for setting up the joint venture Daleel Petroleum Company. The concession, now in operation for 20 years, has another 18 years left with a 10-year extension possibility. MP Petroleum is also operating another Omani oil field - B7 with a daily output of 2,500 barrels - which it has bought from Elf.