Occidental gets deal to explore Oman gas fields

The deal gives Los Angeles-based Occidental Petroleum a 48 percent interest in the project. Occidental will serve as the operator.

Abu Dhabi-based Mubadala holds a 32 percent interest and the Oman Oil Company holds the remaining 20 percent.

The 20-year agreement covers a 2,269 square kilometer area. The companies said exploration, appraisal and development activities will begin immediately.

The companies expect production to begin in 2010 and reach a plateau of 27,500 barrels of oil equivalent per day. Occidental's net share of production at plateau is expected to be about 10,000 barrels of oil equivalent per day and Mubadala's net share is estimated around 6,000 barrels of oil equivalent per day.

The companies foresee a total capital investment in the contract area around $500 million over the next four years. The investment includes field developments along with up to nine exploration wells.