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Investments in Oman’s Oil & Gas sector total $5.84 bn in H1

Investments in oil and gas exploration, development and production during the first half of 2023 amounted to $5.84 billion, according to a senior official of Oman’s Ministry of Energy and Minerals


Dr Saleh bin Ali al Anbouri, Director General of Oil and Gas Exploration and Production, said 62 per cent of this amount went towards capital expenditures, such as geological surveys, drilling operations, and construction of facilities, while the remaining 38 per cent was earmarked towards operating expenses.


“During the current year, oil companies operating in the Sultanate of Oman drilled many exploratory wells in various oil and gas concession areas targeting different reservoirs and at varying depths,” said Dr Al Anbouri. “There are indications of “promising” results from some wells, although this has to be confirmed through long-term testing extending over several months or more. Other wells need further study and testing. The objective is to maintain stable levels of production and reserves.”

According to the official, a number of concessions are available for investment, with the Ministry open for negotiation with any developer interested in this acreage. At the same time, the Ministry continues to promote available blocks through its bidding rounds. The latest bid round, launched at the start of this year, has three blocks – 15, 54 and 36 – up for bids. Interest in these concessions has been significant from both local and international companies, he said, adding that the Ministry is currently evaluating the offers and expects to award the blocks soon.


Referring to recent exploration activity reported by Occidental Oman in its Block 65 license, Dr Al Anbouri said it pertains to previously discovered oilfields. Initial production has so far reached around 6,000 barrels of oil equivalent per day (boed).


“This daily output is high relative to other wells drilled in the area, but production is expected to decrease naturally, while the operator is currently working on a waterflood project to maintain production levels the same field,” he stated.


Dr Al Anbouri confirmed that Oman remains committed to its agreement with the “OPEC Plus” alliance to reduce its crude oil production. A voluntary reduction of 40,000 bpd came into effect in May 2023 which, per the latest OPEC-Plus pact, will continue till the end of December 2024.


Meanwhile, oil and gas companies continues to drill new exploratory wells in their respective concessions in close coordination with the Ministry of Energy and Minerals, he added.