MB Petroleum and its new partner, CNPC, will invest a total of USD 220 million over the next four years to achieve a projected five-fold increase in oil production at the Sultanate’s Mezoon-5 oil concession. Mohammed Al Barwani, chairman and CEO of the MB group of companies, said the recently acquired onshore Mezoon-5 block in Wadi Aswad is seeking to boost production from the current 5000 bpd to 25,000 bpd. Barwani said part of the USD 220 million required for developing the concession in the next four years would be met through the income generated from the concession while the joint venture partners – CNPC and MP Petroleum Group – would each be investing USD 27 million initially.
The concession, acquired by MP Petrogas from Japan Petroleum Explorations Company and Japan National Oil Corp in April for USD 67 million, has proven oil reserves of 120 million bpd. A 50% stake in the acquisition has since been bought by CNPC for setting up the joint venture Daleel Petroleum Company. The concession, now in operation for 20 years, has another 18 years left with a 10-year extension possibility. MP Petroleum is also operating another Omani oil field â B7 with a daily output of 2500 barrels â which it has bought from Elf.
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