Tethys Oil AB will gain a minority interest in Mukhaizna oil field through an agreement to acquire a 2% participating interest in Block 53 onshore Oman from Total E&P Oman for $32 million.
Mukhaizna field, operated by Occidental Petroleum Corp., is a giant heavy-oil development with average gross production of more than 100,000 b/d. Block 53, in central Oman, covers 694 sq km south of Tethys’s operations on Blocks 3 and 4 and east of Block 49. The block is covered by a 30-year production-sharing agreement signed in 2005.
The deal is subject to government approval and the waiver of partner preemption rights. Closing is expected during first-half 2019.