Oman launches new package of oil and gas concession areas

Muscat: The Ministry of Energy and Minerals announced the launch of a new package of oil and gas concession areas distributed between marine and onshore areas, including “Concession Area No. 18” located in the southern Sea of ​​Oman, during the “American Association of Petroleum Geologists International Conference”, which began today at the Oman Convention and Exhibition Center and will continue for three days.

The opening ceremony of the conference and the accompanying exhibition, hosted by Oman Oil Development Company, was sponsored by His Highness Sayyid Dr. Fahd bin Al Julanda Al Said, President of Sultan Qaboos University.

In his speech, His Excellency Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals, said: This conference represents an important global platform for exchanging knowledge and expertise in the field of geology and oil and gas exploration, stressing that the Sultanate of Oman is characterized by geological diversity, as oil and gas reservoirs are spread in different environments, including desert areas and marine areas along its coasts; which provides great opportunities for exploring and developing energy resources, which constitute one of the main pillars of the national economy.

For his part, His Excellency Mohsen bin Hamad Al Hadhrami, Undersecretary of the Ministry of Energy and Minerals, revealed that the Ministry has added a new approach to investment in the oil and gas sectors, noting that this step comes within the framework of the ongoing efforts to attract foreign investments and enhance the partnership with the national operator “OQ Exploration and Production” with the aim of developing and exploiting energy resources in the Sultanate of Oman efficiently and innovatively.

In his speech, His Excellency explained that “Concession Area No. 18” includes untapped hydrocarbon resources and covers an area estimated at 21,140 square kilometers, which will make it one of the largest offshore concession areas in the Sultanate of Oman, noting that the new procedures include the application of a contractual system based on concession fees “royalty” in addition to allowing the establishment of integrated gas exploitation projects.

His Excellency added that “OQ Oil Exploration and Production” will have the right to contribute 10 percent of exploration expenses in “Concession Area No. 18”, with the possibility of raising the contribution to 30 percent in the event of a transition to commercial development.

The conference, titled “The Role of Geological Sciences in Shaping the Future of Energy,” includes several working papers, visual presentations, and discussion sessions on the latest developments, challenges, and opportunities in the future of energy, with the participation of experts from 60 countries around the world.

The conference was accompanied by an exhibition featuring a number of local and international companies specialized in the fields of oil and gas, showcasing their contributions to sustainable growth through exploration and development activities.