Muscat: The Ministry of Energy and Minerals has announced the commencement of a new suite of oil and gas concession areas, distributed across both marine and terrestrial regions, including the "Concession Area No. 18," situated in the southern waters of the Omani Sea.
This announcement was made during the inauguration of an international conference, organized by the American Association of Petroleum Geologists.
The conference, which spans three days, commenced yesterday at the Oman Convention and Exhibition Centre, presided over by His Highness Sayyid Dr. Fahd Al Julanda Al Said, the Vice-Chancellor of Sultan Qaboos University (SQU). It is hosted by the Petroleum Development Oman (PDO).
Minister of Energy and Minerals, Eng. Salim Nasser Al Aufi, highlighted the significance of this conference as a pivotal global forum for the exchange of knowledge and expertise in geology, as well as in the exploration of oil and gas. He emphasized that Oman is endowed with a diverse geological landscape, with oil and gas reservoirs present in various environments, including deserts and coastal marine areas. This diversity, he noted, presents significant opportunities for the exploration and utilization of energy resources, which are fundamental to the national economy.
Undersecretary of the Ministry of Energy and Minerals, Mohsen Hamad Al Hadhrami, spoke about the Ministry's endorsement of a new investment strategy in the oil and gas sectors. He explained that this strategy is a result of efforts to attract foreign investments and to strengthen partnerships with the national operator, OQ Exploration and Production, with the goal of efficiently and innovatively utilizing Oman's energy resources.
In detail, Al Hadhrami mentioned that Concession Area No. 18 encompasses unexplored hydrocarbon reserves, spanning an area of approximately 21,140 square kilometers, making it one of the largest offshore concession areas in Oman.
He further elaborated that the new procedures include the implementation of a contractual system based on concession fees (royalties) and the approval for the establishment of integrated gas exploitation projects.
Al Hadhrami clarified that "OQ Exploration and Production" will be entitled to contribute 10 percent of the exploration costs for "Concession Area No. 18," with the potential to increase this contribution to 30 percent should there be a transition to commercial development.
The conference, titled 'The Role of Geological Sciences in Shaping the Future of Energy,' features working papers, visual presentations, and discussion panels on the latest advancements, challenges, and opportunities in the energy sector.
Experts from 60 countries have participated in the conference, which is accompanied by an exhibition showcasing local and international companies specializing in oil and gas. The exhibition highlights the firms' contributions to sustainable growth through exploration and development initiatives.
