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Occidental gets deal to explore Oman gas fields

Posted on November 24, 2008

Occidental Petroleum Corp. and Mubadala Development Co. of Abu Dhabi have agreed to jointly partner with the Sultanate of Oman to develop existing gas fields and explore for potential new discoveries in Oman.

The deal gives Los Angeles-based Occidental Petroleum a 48 percent interest in the project. Occidental will serve as the operator. Abu Dhabi-based Mubadala holds a 32 percent interest and the Oman Oil Company holds the remaining 20 percent.

The companies expect production to begin in 2010 and reach a plateau of 27,500 barrels of oil equivalent per day. Occidental's net share of production at plateau is expected to be about 10,000 barrels of oil equivalent per day and Mubadala's net share is estimated around 6,000 barrels of oil equivalent per day.

The companies foresee a total capital investment in the contract area around $500 million over the next four years. The investment includes field developments along with up to nine exploration wells.

For more information: WWW.OXY.COM

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