Maha signs pact with Mafraq for Block 70 in Oman

Maha signs pact with Mafraq for Block 70 in Oman

Muscat: Maha Energy (Maha), through its wholly-owned subsidiary Maha Energy (Oman) and Mafraq Energy (Mafraq Energy) have entered into a Joint Operating Agreement (JOA) for Block 70 in Oman, on 28 January 2023.

The signature of the JOA, alongside the Governmental approval ratified by Royal Decree 74/2022 and other relevant procedures, marks the satisfaction of all conditions precedent required for the conclusion of the assignment of Maha’s 35 per cent work interest to Mafraq Energy, as provided in the relevant Farmout Agreement signed by the parties in August 2022. Maha and Mafraq Energy will address the post-transfer obligations moving forward.

Maha is the Operator of Block 70, with a 65 per cent shareholding interest. The agreements require Mafraq Energy to reimburse Maha for their prorated share of all past costs, including the signature bonus required under the relevant agreement with the government. Mafraq Energy will also be required to pay its share of all future expenditures on Block 70.

Paulo Mendonça, Maha’s CEO said: “We are proud to have finalised yet another major milestone in what is to be a great partnership. Maha is moving forward to commence the testing aiming for fast production of Block 70 and having Mafraq Energy as its