Dentons Guides OQEP in Oman Oil and Gas Block Divestment
Prominent legal advisor Dentons has facilitated OQ Exploration & Production (OQEP) in the strategic divestment of a 40% interest in two crucial oil and gas blocks situated in Oman. As a wholly-owned subsidiary of OQ, a globally integrated energy company deeply rooted in Oman, OQEP currently manages three blocks in Oman (Blocks 8, 48, and 60). The divestment involved a 20% interest in each Exploration & Production Sharing Agreement (EPSA) for Blocks 60 and 48, with Medco Energi Internasional Tbk and PT Medco Daya Abadi Lestari acquiring the stakes. These blocks, located onshore in West Central Oman, were previously entirely owned by OQEP before the divestment.
Block 60, OQEP’s flagship upstream asset, boasts the Bisat oil field and the Abu Butabul gas field. On the other hand, Block 48, spanning a substantial 3,000 sq. km exploration license, straddles the boundary between the Al Dakhiliyah and Al Wusta governorates. Importantly, OQEP will retain its role as the operator for both Blocks, ensuring continuity in the operational landscape.
Yasser Taqi (pictured left), Partner in Dentons’ Muscat office heading the Energy, Transport and Infrastructure team, said, “We’re delighted to have advised our long-standing client OQEP on the sale of part of their stake in block 48 and 60, welcoming high profile foreign investment into Oman’s oil sector.”
The transaction stemmed from a sale and purchase agreement signed on August 22, 2023, which Dentons had also advised on.
Humphrey Douglas (pictured right), who led the Dentons team in London, said, “It was great to work again with OQEP’s international M&A and operational teams, and in conjunction with our colleagues in Dentons’ Muscat and London offices, to further diversify OQ’s international investor base”.
The cross-disciplinary Dentons team advising OQEP included Humphrey Douglas, Yasser Taqi, Torquil Law, Michael Kneebone, Budoor Mossa, Bethan McGarva, Alex Tostevin, Alexander Hewitt, Catherine Gilfedder, Tom Collier, Ivan Jelocnik, Aarom Rafi, Jeehyun Kwak and Nisha Gupta.
