Muscat – Oman’s Ministry of Energy and Minerals has announced the launch of a new bidding round for the exploration and development of three onshore oil and gas blocks.
The bidding round, unveiled on Tuesday via the ministry’s official LinkedIn page, is being conducted in collaboration with OQ Exploration and Production Company (OQEP) and Scotiabank.
The blocks on offer – 36, 43A, and 66 – are located across Oman’s diverse geological basins, offering considerable potential for investors looking to tap into the sultanate’s substantial hydrocarbon reserves.
‘The Ministry of Energy and Minerals invites investors to participate in a competitive bidding process for oil and gas exploration in Blocks 36, 43A, and 66,’ the ministry said.
In a regulatory filing with the Muscat Stock Exchange, OQEP noted, ‘This announcement is part of the ongoing cooperation framework between OQEP and the Ministry of Energy and Minerals, designed to attract new investments into Oman’s exploration and production sector. OQEP expresses its deepest appreciation to the ministry for its continued trust and partnership.’
The awarding of these blocks will be subject to the Ministry of Energy and Minerals’ established procedures, which include the signing of Concession Agreements and subsequent ratification through Royal Decrees.
Block 66, situated on the eastern flank of the Rub Al Khali Basin, spans an area of 4,898 sqkm. Block 43A, covering 6,920 sqkm, is located in the onshore Buraimi region. The largest of the three, Block 36, is positioned in the Ghudun Basin, part of the expansive Rub Al Khali Basin, and encompasses an area of 18,557 sqkm.
Oman’s oil and gas sector remains the largest sector for foreign direct investment (FDI), accounting for 79.1% of the country’s total FDI stock. Total FDI in the oil and gas sector stood at RO21.112bn as of the end of September 2024. New foreign investments in the sector reached RO3.439bn during the first three quarters of 2024, underscoring the industry’s pivotal role in Oman’s economy.
Oman’s total oil production declined by 5.1% in 2024, falling to 363.29mn barrels from 382.77mn barrels recorded in the corresponding period of the previous year. The daily average production also registered a 5.4% decrease, averaging 992,600 barrels per day compared to 1.05mn barrels per day in 2023.
The decline in crude production is primarily attributed to Oman’s adherence to OPEC+ production cut agreements.
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