The Government of the Sultanate of Oman awarded Block 56 to a consortium led by Oilex (25%, operator), and including GAIL India Ltd (25%), Videocon Industries Ltd (25%), Hindustan Petroleum Corporation Ltd (12.5%) and Bharat Petroleum Corporation Ltd (12.5%). The Exploration and Production Sharing Agreement (“EPSA”) was signed on 28 June in Muscat.

Block 56 was Oilex’s first choice block of the blocks on offer in the bid round that closed on 1 January 2006. The block is located onshore, adjacent to producing fields operated by PDO, the Oman national oil company, in the South Oman Salt Basin, which is one of the main producing basins in Oman.

In addition to acquiring a 1000 km 2D survey, a total of 7 exploration wells has been drilled in the block by the consortium. Significant oil columns were encountered in 3 of these wells and oil shows and minor oil zones in 3 of the other wells drilled. A key issue identified was the oil density and the capacity of the wells to flow at commercial rates. Further testing of the oil reservoirs will be carried out and consideration given to an appropriate development plan for 2009.

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