Oman to offer six new oil blocks in Q1 2019
With a view to sustain Oman’s oil production levels at around 1mn barrels per day, the sultanate is likely to offer six new oil blocks for the development to private sector players in the first quarter of 2019, according to a senior official at the Ministry of Oil and Gas.
Speaking at a panel discussion on the topic ‘Investing in Oman’s oil and gas industry’ at OPAL Oil & Gas Conference 2018 on Sunday, Dr Saleh bin Ali al Anboori, director general of planning and studies at the Ministry of Oil and Gas, said that Oman has an attractive legal and contractual framework to lure investments in the hydrocarbon exploration and production.
“The country’s attractiveness can be gauged by the fact that in the year 2000 just 17 concession blocks were presented to the private players, but in 2018 total number of blocks given to private players have risen to 29. The sultanate will present another six concession blocks to the private players in the first quarter of 2019,” Anboori said.
He said all these six new blocks will be covered under the standard exploration and production sharing agreement and are located in the vicinity of existing production areas. Out of total 29 blocks awarded to the private players, 12 are producing oil, Anboori added.
On prospects of increasing Oman’s daily oil output in near future, Anboori said that their target is to sustain long-term production average at around 1mn barrels per day.
He added that besides the six new blocks, which will be offered for exploration to the private players, the government is also working on making special conditions for Habhab oilfield which has proven reserve of a billion plus barrels of crude.