Eric Watkins
Senior Correspondent
LOS ANGELES, June 7 -- Oman signed an oil and gas exploration and production agreement June 6 with Ireland's Circle Oil PLC to explore in southwestern Oman on the 15,439 sq km Block 49 in Dhofar province.
Under the agreement, a $22 million work program, which includes review of existing data and aerogravity and 2D seismic surveying, has been set for the first 36-month period. A well may also be drilled during this time.
Further drilling and seismic surveying will be carried out during two additional 18-month periods.
Block 49 extends northward to the Saudi Arabian border and lies immediately to the west of Petroleum Development Oman's Block 6, which produces more than 700,000 b/d of crude oil. Sinopec holds Blocks 36 and 38 to the west of Block 49.