‘Govt plans to sign one more oil concession pact this month’

Muscat: Oman government is planning to sign an agreement with a multinational oil firm to develop onshore field (block 54) on production sharing basis this month or early next year, Nasser bin Khamis Al Jashmi, Undersecretary at the Ministry of Oil and Gas, told journalists on the sidelines of a function to sign agreements for developing block 41 and 55.

"There are some other oil blocks in the pipeline (to be awarded to oil companies)," added Undersecretary at the Ministry of Oil and Gas. This is part of a tender floated by the government last year for developing several oil and gas blocks in a move to open up both offshore and onshore blocks for development in a bid to enhance hydrocarbon resources in the country.

The number of companies operating in the oil and gas sector has reached around 20, working in 29 concession areas, by the end of last year. While eight companies are engaged in oil production, twelve others are carrying out either exploration or geological studies in 19 oil blocks.

Apart from awarding two blocks last week, Oman has signed two oil concession agreements – one with MOL and the other with Frontier Resources International – for developing oil fields on production sharing agreements last year.

Undersecretary at the Ministry of Oil and Gas said of the country's average daily crude oil production of 950,000 barrels this year, 650,000 barrels are from national oil company Petroleum Development Oman (PDO), while the remaining 300,000 barrels per day are contributed by all other companies.

"Some of these firms are 100 per cent foreign owned, while others are Omani joint venture firms.

Daleel has 50 per cent local partnership, Petrogas is 100 per cent local and Occidental is fully owned by a foreign company," he further added.


 Rate this Article
Rates : 0, Average : 0

Share more.

Post a Comment

Did you like this section? Leave a comment!
Your Name : Your Email Address :
Your Comment :
Enter Image Text:
No Comments Posted