The Omani Ministry of Oil and Gas has announced that it signed a heads of agreement with Occidental Petroleum Corporation and Mubadala Development Company governing the development of the Mukhaizna heavy oil field under a new production sharing agreement.
The current production of the field is about 10,000 barrels per day. Occidental and its partners, including the Government of Oman, expect to invest over US$2 billion to implement a large scale team flood to increase production from the field to 150,000 barrels per day within the next few years.
Occidental Petroleum Corporation is a U.S. oil and gas company based in Los Angeles, Mubadala Development Company, a wholly owned company of the Government of the Emirate of Abu Dhabi, will invest in the project through its wholly owned subsidiary Liwa Energy Limited.
According to ONA, Dr. Mohammed bin Hamad al Rumhi, Minister of Oil and Gas, signed on behalf of the Sultanate’s government, Casey Olson, Executive Vice President, signed on behalf of Occidental Petroleum Corporation and Ahmed Ali Al Sayegh, Director and Board Member, signed on behalf of Liwa Energy Limited.
Senior representatives from the Ministry of Oil and Gas , Occidental Petroleum and Liwa Energy Limited attended the signing ceremony.