In a significant move for the Sultanate of, His Majesty Sultan Haitham bin Tarik has issued a Royal Decree, formalizing the nomination of a 30% participation share in the petroleum agreement for Concession Block 65 to OQ Exploration and Production LLC (formerly Oman Oil Company for Exploration and Production LLC).
This decree follows the perusal of several key legal documents and agreements, including the Basic Statute of the State, the Oil and Gas Law promulgated by Royal Decree 8/2011, and Royal Decree 48/2019. The latter approved the petroleum agreement between the Government of Oman, Occidental Oman Block 65 LLC, and Oman Oil Company for Exploration and Production LLC for Block 65.
Key Factors
In Article 1 the nomination of 30% of the participation share that the government is entitled to nominate in the petroleum agreement signed on 16 December 2018 for Block 65 is approved. This adjustment aligns with the public interest and positions OQ Exploration and Production LLC as a major stakeholder in the venture.
Final Shares of the Agreement Parties
- 51% for Occidental Oman Block 65 LLC
- 49% for OQ Exploration and Production LLC
This decision underscores the strategic importance of OQ Exploration and Production LLC in advancing Oman’s energy sector. By securing a substantial stake, OQ Exploration and Production LLC is poised to play a crucial role in the exploration and production activities in Block 65, fostering further development and growth within the industry.
The official approval of this nomination marks a pivotal moment for all parties involved, signifying a strengthened collaboration between the government and private sector entities in harnessing Oman’s rich oil and gas resources.
OQ Exploration and Production LLC: OQ Exploration and Production LLC, formerly known as Oman Oil Company for Exploration and Production LLC, is a leading entity in Oman’s energy sector, dedicated to exploring and harnessing the nation’s hydrocarbon resources efficiently and sustainably.
Occidental Oman Block 65 LLC: Occidental Oman Block 65 LLC is a key player in the oil and gas industry, known for its extensive expertise and commitment to advancing energy production and exploration in Oman.
This news article has been prepared by Basima Al Sumoom advocates & legal consultants to provide insights into the latest developments in Oman’s legal and energy sectors
For further information and legal guidance in Oman’s energy sector, please contact our law firm at info@basimalaw.com.
