Tethys Oil AB (publ) announced Dec. 23 it signed an agreement to acquire a 2% stake in Block 53 onshore Oman from Total SA subsidiary Total E&P Oman.

The transaction is valued at US$32 million and is subject to government approval. It has an effective date of Jan. 1, 2018, and closing is expected during the first half of 2019.

Operated by Occidental Petroleum Corp., Block 53 is in the Mukhaizna oil field and has a gross production of more than 100,000 barrels per day. The block is covered by a 30-year production sharing agreement signed in 2005 and is near the operational assets of Tethys Oil.