Maha Energy Binds In An Agreement For Block 70

A Joint Operating Agreement (“JOA”) for Block 70 in Oman.

The signature of the JOA, alongside the government's 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% work interest to Mafraq Energy, as provided in the relevant Farmout Agreement signed by the Parties in August 2022 ("FOA"), stated the report.

Maha and Mafraq Energy will address the post-transfer obligations moving forward.

According to the report, Maha is the operator of Block 70, with a 65% 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 local partner with a competent and experienced Omani team, bringing knowledge of the local market to the operations."

Talal Al Subhi, Director of Mafraq Energy LLC, commented, "It is exciting times." Mafraq Energy LLC is honoured to play its part in achieving Vision 2040 as set by HM Sultan Haitham bin Tariq Al Said. This partnership is a true embodiment of enhancing the ICV content of Block 70.

"The focus now is to collaborate to kick off the product testing stage." Proving the productivity of the field is a key aspect of declaring commerciality. "We look forward to bringing that value to the Sultanate of Oman," Talal Al Subhi added.