Occidental and Mudabala Development Company of Abu Dhabi has announced the signing of an exploration and production sharing agreement with the ministry of oil and gas in the Sultanate of Oman. Under the terms of agreement, the parties will develop four existing gas fields and explore for potential new discoveries in a newly formed contract area in Northern Oman. The 20 year agreement covers a 2,269 square kilometer area.

Oxy will serve as operator under the EPSA and hold a 485 interest, with Mubadala holding a 32% interest and the Oman Oil Company holding the remaining 20%.

Dr Ray R. Irani chairman & CEO of Occidental said that "We are pleased to expand upon our existing relationship with Oman and look forward to working with our partners to help ensure that future supplies of natural gas will be available to fuel Oman's economic growth. Signing this EPSA is another important step in the implementation of our growth strategy within the region. The development of the substantial natural gas resources contained within the contract area will create significant value for the people of Oman and for our shareholders."

Total capital investment in the contract area is expected to be approximately USD 500 million over the next 4 years. In addition to the field developments, this investment will include up to 9 exploration wells over a 6 year exploration period to test the upside potential of the shallow and deep gas plays found in the region.