Amoco targets Omani gas development

Oman gas joint venture [72,828 bytes] Units of Amoco Corp., Occidental Petroleum Corp., and Finland's Neste Oy have joined forces to explore for and develop natural gas in northern Oman. The companies plan to conduct a joint appraisal program for commercializing existing gas finds as well as for targeting new prospects in a concentrated 14,000 sq km area licensed to the partners. This common area of interest covers Amoco Blocks 15 and 44 and Oxy Blocks 9, 27, and 31 (see map). Venture

Nov. 9, 1998

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Oman gas joint venture [72,828 bytes]

Units of Amoco Corp., Occidental Petroleum Corp., and Finland's Neste Oy have joined forces to explore for and develop natural gas in northern Oman.

The companies plan to conduct a joint appraisal program for commercializing existing gas finds as well as for targeting new prospects in a concentrated 14,000 sq km area licensed to the partners. This common area of interest covers Amoco Blocks 15 and 44 and Oxy Blocks 9, 27, and 31 (see map). Venture interests are Amoco Oman Gas BV 60%, Occidental of Oman 26%, and Neste (E&P) BV 14%.

Venture plans

By yearend, pending final approval, Oxy will take charge of initial exploration and appraisal work. Amoco plans to lead infrastructure development and gas marketing for the venture. The partners plan to develop fields, a gas gathering system, a processing plant, and transmission lines to the city of Sohar and the Amoco-operated gas hub in Sharjah.

David Nagel, president of Amoco Oman Gas, said, "Amoco, Occidental, and Neste believe they have developed a first-class plan for the commercialization of remote natural gas reserves in northern Oman. The development and production of natural gas from northern Oman will help satisfy the growing demand for natural gas and encourage continued economic development in the area. The development plan includes the construction of significant new natural gas infrastructure in northern Oman, plus efficient utilization of existing processing, transportation, and sales facilities in the U.A.E.

"The joint venture partners anticipate that the large Sharjah gas hub will eventually be linked with other large gas hubs in the region to form part of the proposed Gulf Cooperation Council gas grid."

Oman signed a production-sharing agreement with Amoco for its two blocks earlier this year, covering 2,555 sq km (OGJ, July 6, 1998, p. 43). Amoco has been exploring in Oman and operating in Sharjah since 1978. Oxy Oman and Neste Oy have been operating on Block 9 for about the same time.