Tuesday 05 / November / 2024
Muscat: The Ministry of Energy and Minerals announced the launch of a new package of oil and gas concession areas distributed between marine and onshore areas, including "Concession Area No. 18" located in the southern Sea of Oman.
This was unveiled at the opening of an international conference organised by the American Association of Petroleum Geologists.
The three-day event kicked off yesterday at the Oman Convention and Exhibition Centre under HH Sayyid Dr. Fahd Al Julanda Al Said, Vice-Chancellor of Sultan Qaboos University (SQU). It is hosted by Petroleum Development Oman (PDO).
Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, said that the conference constitutes an important global platform for exchanging knowledge and expertise in geology, and oil and gas exploration. He pointed out that Oman boasts a broad range of geological diversity, with oil and gas reservoirs existing in different settings, including desert areas and marine areas along the coast. This, he observed, provides great opportunities for exploring energy resources that form the cornerstone of the national economy.
Mohsen Hamad Al Hadhrami, Undersecretary of the Ministry of Energy and Minerals, said that the Ministry endorsed a new approach to investments in the sectors of oil and gas. He added that this approach stems from ongoing efforts to attract foreign investments and enhance partnership with the national operator OQ Exploration and Production with the aim of utilising energy resources efficiently and innovatively in Oman.
Speaking in detail, Al Hadhrami said that Concession Area No. 18 comprises untapped hydrocarbon resources and covers an area estimated at 21,140 square kilometres, making it one of the largest offshore concession areas in the Sultanate of Oman.
Al Hadhrami added that new procedures include the implementation of a contractual system based on concession fees (royalty), in addition to approval for the establishment of integrated gas exploitation projects.
Al Hadhrami explained that “OQ Exploration and Production” will have a right to contribute 10 percent of exploration expenses in “Concession Area No. 18”, with the possibility of raising this contribution to 30 percent in the event of a transition to commercial development.
The conference, titled 'The Role of Geological Sciences in Shaping the Future of Energy', includes working papers, visual presentations and discussion panels on the latest developments, challenges and opportunities in the future of energy.
Experts from 60 countries participated in the conference, which was accompanied by an exhibition featuring local and international companies specialised in the fields of oil and gas. The expo showcases the firms’ contribution to sustainable growth through exploration and development programmes.
