Oman output cut hits Tethys Oil share
, April 27, 2020
Swedish oil company Tethys Oil has been informed by the operator of Blocks 3 and 4, onshore Oman, that following the Oman’s participation in the Opec+ production limitation agreement, both blocks will be subject to production limitation from May 1.
The company’s share of the production quota, before government take, for May and June 2020 will be 8,700 barrels of oil per day. From July 1, its quota will increase to 9,300 barrels of oil per day and remain at that level throughout 2020.
As a result, Tethys Oil has also suspended the previously announced financial guidance for 2020 regarding production, which was 12,600 to 13,400 bopd before government take), investments (previously $50-64 million) and operating expenses (previously $11.5 per barrel).
Tethys Oil focusse on onshore areas with known oil discoveries. Its core market is Oman, where it holds interests in Blocks 3 and 4, Block 49 and Block 56.
Tethys Oil has net working interest 2P reserves (total proven and probable) of 26.1 mmbo and net working interest 2C Contingent Resources of 13.5 mmbo and had an average oil production of 12,832 barrels per day from Blocks 3 and 4 during 2019. --Tradearabia News Service
