Mubadala and Oxy sign deal with Oman

Mubadala Development Company and Occidental Petroleum Corporation (Oxy) have signed a 20-year exploration and production sharing agreement with Oman.

Under the agreement with the Ministry of Oil and Gas of Oman, the parties will develop four existing gas fields and explore for potential new discoveries in a newly formed contract area (Habiba – Block 62) in northern Oman, covering an area of 2,269 square kilometres.

Total capital investment in the contract area is expected to be around $500 million (Dh1.84bn) over the next four years. In addition to field developments, the investment will include exploration of nine wells over a six-year exploration period.

Oxy will serve as operator under the new deal and hold a 48 per cent interest, with Mubadala holding a 32 per cent interest and the Oman Oil Company holding the remaining 20 per cent in
the venture.