Muscat: Nasser bin Khamis Al Jashmi, undersecretary at the Ministry of Oil and Gas, said that Oman's potential oil reserves are estimated at 50 billion barrels, of which 5 billion barrels are ready for production.
Al Jashmi said that 7 to 8 billion barrels of oil were produced over the past few years. He affirmed that exploration programme is progressing well and the production technology is being developed.
He denied any dispute with the company's investment in the field of gas, stating that the company is extracting gas and selling it to the Omani government and that there is ongoing negotiation about the price of gas, which the company will sell to the government.
A preliminary agreement has been signed by the company with the government. Al Jashmi explained that some companies offer the government 60 per cent and some 70 per cent. Sometimes the government's share is calculated in terms of number of barrels extracted per day.