Rex reaffirms commitment to oil production offshore Oman
Rex International Holding aims to start oil production from block 50 offshore Oman next year following new studies of the GA South#1 discovery well and seismic data.
SINGAPORE– Rex International Holding aims to start oil production from block 50 offshore Oman next year following new studies of the GA South#1 discovery well and seismic data.
The company had previously sought to scale back its equity in the 17,000-sq km (6,564-sq mi) block, where it holds a 92.65% indirect stake via its subsidiary Masirah Oil.
However, re-analysis of the seismic data with an updated version of the company’s Rex Virtual Drilling (RVD version 4) software and substantial conventional interpretation are very encouraging, according to executive chairman Dan Broström.
“Although we had previously planned to farm out a larger interest in the concession to reduce our holding risks,” he said, “we believe that there are merits in maintaining a high equity stake in the block to reap potential benefits of more upside and cash flow when there is production.
“In the meantime, we are looking at other non-dilutive financing options to help fund oil production costs.”
Masirah Oil’s final plan for development remains subject to approval by Oman’s government. In 2012, Aker Geo and Paereto Asia estimated the concession’s prospective oil resources at around 4.7 Bbbl.