Oman signed Dec. 16 two agreements allowing a subsidiary of Houston-based Occidental Petroleum Corp. the rights to explore for oil and natural gas in concessions 51 and 65, according to a report from Reuters.
The agreement for concession 51, which covers 10,133 square kilometers was signed with Occidental Oman, while concession 65, which covers 1,230 square kilometers was signed with Occidental Oman and state-owned Oman Oil Co. subsidiary Oman Oil Co. Exploration and Production.
Occidental will spend $14 million on exploration operations in concession 51 during the initial three-year phase of the contract, Salman al-Shehhi, Oil Ministry Director of Investment told state TV.
Occidental Petroleum is the largest independent oil producer in Oman.
Oman's oil output is around 995,000 barrels per day. The sultanate is not a member of OPEC, but it agreed to cut output along with OPEC and other oil producers earlier this month to reduce the global glut.