Oman: Tethys Deal Falls Through

Sweden’s Tethys had its expansion ambitions dented this week as the firm’s planned 2% buy-in at Oman’s Block 53 fell through ( MEES, 4 January ). The closing of the acquisition, Tethys says, was subject to approval from the government and all the partners in the project—including operator Occidental (45%), Oman Oil Company (20%), Indian Oil (17%), Mubadala-owned Liwa Energy (15%), Total (whose 2% share Tethys was acquiring), and Portugal’s Partex (1%). One of the partners did not sign on, nixing the transaction.

Block 53 boasts the 120,000 b/d Mukhaizna heavy oil field, Oman’s largest. Tethys will only miss out on 2,400 b/d working interest, but given the firm’s total net production of only around 12,000 b/d (all from its 30% stake in CCED’s 39,000 b/d Blocks 3&4), the added revenue and value from working with Block 53’s star-studded partners would have afforded the Swedes an excellent opportunity. Tethys began seismic at its other asset Block 49 (100% Tethys) last month ( MEES, 14 December 2018 ). (CONTINUED - 155 WORDS)