Sinochem Subsidiary Makes Gas Discovery in Oman

Sinochem's subsidiary, Atlantis Oman, is drilling a gas reservoir in northern Oman that holds up to 300 billion cubic feet (bcf), an official said. "We are drilling a reservoir that has a gas reserve of between 200 and 300 bcf," Atlantis Oman spokesman said. "Block 40 has other reservoirs, which we estimate have a combined potential reserves of 1.5 trillion cubic feet (tcf)," he added.

The block, which was acquired by Atlantis Oman in a production sharing agreement with the government of Oman, covers an area of 5,353 sq km (2,066 sq miles).

It is located offshore Musandam near the Strait of Hormuz, a strategic expanse of water shared by Oman and Iran.

Oman signed a number of production sharing agreements with foreign companies in the last three years to boost its oil and gas reserves. Officials said that Oman has proven gas reserve of 30 tcf and 5.8 billion barrels of crude oil.

Sinochem acquired Atlantis Oman from PGS in February of this year.