Oman's government signed on Thursday an exploration and production-sharing agreement for an oil and gas block with local producer Hydrocarbon Finder.

Hydrocarbon Finder, which is taking over Block 7 from Petrogas, aims to ramp up production to 5,000 barrels per day (bpd), Mohammed al-Jahwari, executive director of the company, told reporters.

Petrogas had a production rate of 950 bpd, according to Salim al-Aufi, undersecretary at the ministry of oil and gas.

Block 7 is located in the centre of Oman and is spread over an area of 2,331 square kilometres (900 square miles). Operations will start on April 1, the ministry said.

In addition to increasing production, Haydrocarbon Finder is looking to lower costs, Saleh al-Anboori, director-general of petroleum investment at the ministry, said.

“Production cost from Block 7 was in the $30s, a cost Hydrocarbon Finder is planning to reduce,” he said.

Hydrocarbon Finder plans to drill 10 exploration wells over the next five years. - Reuters