Tethys Oil to invest over $90mln in Oman upstream assets

Tethys Oil to invest over $90mln in Oman upstream assets

MUSCAT: Swedish energy firm Tethys Oil has pledged to invest over $90 million in its upstream assets in the Sultanate of Oman during the current fiscal year. This commitment is roughly on par with its allocation of between $85 – 95 million in its portfolio of operated and non-operated blocks in 2023.

According to the Stockholm-headquartered independent operator, around $63 – 67 million, representing the bulk of its budget for the current year, is earmarked towards its flagship asset – the non-operated Blocks 3&4 in eastern Oman.

Operated by CC Energy Development (with a 50 per cent interest), the producing blocks currently account for all of Tethys Oil’s revenues from its Oman assets. Tethys Oil has a 30% interest in the adjoining blocks, with Mitsui E&P Middle East holding the remaining 20 per cent equity interest.

Key expenditures related to Block 3&4 for the year include around $26.2 million towards drilling (down from $33.7 million in 2023), $6.3 million towards seismic acquisition (versus $11.6 million a year earlier) and $9.5 million in the ongoing development of a major Gas-to-Power project that was commissioned late last year.

Tethys Oil expects full year 2024 average production from Blocks 3&4 to be in the range of 8,200