Daleel Petroleum was established in 2002 as a joint venture between Mezoon Petrogas (a subsidiary of MB Holding) and Mezoon Petrogas BVI (subsidiary of China National Petroleum Corp).
The agreement was signed by H E Dr Mohammed bin Hamad al Rumhi, Minister of Oil and Gas, on behalf of the government and Mohammed al Barwani, chairman of Mazoon Petrogas, signed on behalf of Daleel Petroleum.
Block 5, which is home to four key oilfields with an area of 992sq km, holds expected recoverable reserves of around 200mn barrels.
However, with the advancement of enhance oil recovery (EOR) techniques, the company expects the amount of recoverable reserves can be increased significantly.
Located around 100km from Ibri, Block 5 started pumping hydrocarbons in 1981 and has a successful history of producing oil for last 40 years.
As the current concession period under the previous agreement is coming to an end, the Ministry of Oil and Gas and Daleel Petroleum have agreed to expand the exploration and production sharing agreement for another 15 years.
When Daleel Petroleum took the control of Block 5 in 2002 it was producing around 3,000-4,000 barrels per day, now the production has reached around 55,000 barrels per day, a company official said, while speaking to reporters on the sidelines of the signing ceremony.
“By implementing right technologies the production can be further increased to 70,000 barrels per day and even beyond that also,” he added.