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Thu 3 Jan 2019 06:50 PM

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Norway's DNO exits oil fields deal in Oman

Norwegian oil and gas operator relinquishes operatorship and participation in Oman Block 8, which contains the Bukha and West Bukha fields

Norway's DNO exits oil fields deal in Oman
From January 4, Block 8 will be operated by the Musandam Oil and Gas Company.

DNO, the Norwegian oil and gas operator, has announced that its subsidiary DNO Oman Block 8 Limited has relinquished operatorship and participation in Oman Block 8.

The deal has been agreed with Oman's Ministry of Oil and Gas and the state-owned Oman Oil Company Exploration and Production (OOCEP).

Offshore Block 8, which contains the Bukha and West Bukha fields, off the Musandam peninsula, produced an average of 4,458 barrels of oil equivalent per day during 2018.

The handover follows the expiry of the 30-year commercial term of the exploration and production sharing agreement.

"Since inception, Block 8 has produced 35 million barrels of oil and 285 billion cubic feet of gas, generating the sultanate of Oman about $1 billion in total revenues," DNO's managing director Bjorn Dale said.

From January 4, Block 8 will be operated by the Musandam Oil and Gas Company, fully-owned by OOCEP, a statement said.

DNO held a 50 percent interest in the licence alongside LG International, which held the remaining 50 percent interest.

The company is one of the largest producers of oil in Iraq’s Kurdistan region and also holds licences in Norway, the United Kingdom and Yemen.

The largest shareholder in Oslo-listed DNO is RAK Petroleum Holdings, which owns 40.45 percent of the company.

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