Gulfstream Resources signs PSA with Oman

Gulfstream Resources Canada Ltd., Calgary, has signed a gas sales agreement with Oman's Ministry of Oil and Gas to develop Hafar Block 30 onshore. The project is the first gas development in Oman by a concession holder based on an exploration and production-sharing agreement, the company reported.


Gulfstream Resources Canada Ltd., Calgary, has signed a gas sales agreement with Oman's Ministry of Oil and Gas to develop Hafar Block 30 onshore. The project is the first gas development in Oman by a concession holder based on an exploration and production-sharing agreement, the company reported.

The development plan covers production from the Hafar, Al Sahwa, and Nadir gas fields and includes gathering systems, a central processing facility, and a 16 km tie-in to the government gas system. Total development cost is a projected $37 million, a spokesman said.

Under the agreement, the annual contract quantity averages 84 MMcfd, with provision for excess amounts, the company reported. Gulfstream has a 100% working interest in the project.

The development for Hafar Block 30 was approved by Oman Oct.18, 1999. A memorandum of gas supply was signed at that time, outlining the terms for the purchase of natural gas by the government. These terms formed the basis of the gas sales agreement signed June 6.

Planning and logistics for the Hafar project are currently well advanced, the spokesman said. Drilling and completion and civil contracts have been approved, environmental impact assessments have been completed, and all major facilities contracts have been tendered and evaluated. He said the project is scheduled begin operations in the summer of 2001 and is expected to add about $20 million/year in cash flow.

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