The new areas will include Concession Area No. 18 located in the southern Sea of Oman.
Oman’s Ministry of Energy and Minerals announced the launch of a new package of oil and gas concession areas at an international conference organised by the American Association of Petroleum Geologists and hosted by Petroleum Development Oman (PDO). The new areas will be distributed between marine and onshore areas, including Concession Area No. 18 located in the southern Sea of Oman.
At the conference, Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, highlighted Oman’s broad range of geological diversity, with oil and gas reservoirs existing in different settings, including desert areas and marine areas along the coast. These provide great opportunities for exploring energy resources that form the cornerstone of the national economy.
Mohsen Hamad Al Hadhrami, Undersecretary of the Ministry of Energy and Minerals, added that the Ministry endorsed a new approach to investments in the sectors of oil and gas. He added that this approach stems from ongoing efforts to attract foreign investments and enhance partnership with the national operator OQ Exploration and Production with the aim of utilising energy resources efficiently and innovatively in Oman.
Detailing the package, Undersecretary of the Ministry of Energy and Minerals, Mohsen Hamad Al Hadhrami said that Concession Area No. 18 comprises untapped hydrocarbon resources and covers an area estimated at 21,140 square kilometres, making it one of the largest offshore concession areas in the Sultanate of Oman. The new procedures would include the implementation of a contractual system based on concession fees (royalty), in addition to approval for the establishment of integrated gas exploitation projects.
Al Hadhrami explained that OQ Exploration and Production will have a right to contribute 10 percent of exploration expenses in Concession Area No. 18, with the possibility of raising this contribution to 30 percent in the event of a transition to commercial development.
