Oman’s Oil & Gas Ministry has awarded PetroTel exploration and production sharing agreements on two oil and gas blocks in the south of the sultanate.

The US-based company won a three-year agreement to explore Blocks 39 and 67 located onshore in Dhofar governorate. The blocks cover a combined area of 13,379 square kilometres.

PetroTel will now carry out a seismic programme and geological studies before starting drilling on the blocks.

Mohammed bin Hamad al-Rumhy, Oman’s oil and gas minister, said last month that the government was in the final stages of awarded two more blocks in southern Oman – 54 and 55 – and plans to tender six more during April.

Oman increased its production of crude oil by 4 per cent in 2012 as it continued to improve recovery through enhanced oil recovery (EOR) projects.