5 concessions to be awarded

MUSCAT -- Five hydrocarbon blocks, currently up for grabs both onshore and offshore Oman, are due to be awarded this year, according to a senior official of the Ministry of Oil and Gas. Dr Saleh bin Ali al Anbouri, Director General - Petroleum Investment Management, said the blocks in question are among a total of 13 concessions presently open for investment around Sultanate.

Addressing the 1st Omani-Spanish Business Forum, which concluded at Al Bustan Palace Hotel, Dr Al Anbouri said negotiations are in an advanced stage with a number of national and international oil firms bidding for the five concessions.

The remaining concessions are likely to be awarded next year. The awards are set to further bolster the number of companies -- local and international -- currently exploring for oil and gas.

At present, 32 exploration and production (E&P) firms are operating in a total of 32 blocks in the Sultanate, said Dr Al Anbouri. Hydrocarbon output currently averages 876,000 barrels per day (bpd) of oil and 92.4 million standard cubic metres of gas per day.

Contributing to this output are seven companies: Petroleum Development Oman (PDO), Occidental of Oman, Daleel Petroleum, Petrogas, PTTEP, RAK Petroleum, and CCED.

The Ministry of Oil and Gas, Dr Al Anbouri said, is committed to supporting E&P companies, operating both onshore and offshore, in developing the hydrocarbon potential of the Sultanate under Exploration and Production Sharing Agreements (EPSAs).

The government, he added, was also keen for companies to explore for new reservoirs and undertake seismic activities. The official urged international companies to support E&P operations through the introduction of modern technologies, particularly in areas like fraccing of tight oil and gas wells, reduction of production water, and seismic gathering.

In his presentation, Dr Al Anbouri listed a number of ongoing projects and initiatives underway by oil and gas producers aimed at boosting Oman's hydrocarbon output.

Key examples include enhanced oil recovery projects by PDO, secondary recovery projects implemented by Oxy at its Jalal East, Saima and Rayaan fields, expansion of Oxy Mukhaizna's Phase 2 production facilities, and Daleel's Station B capacity expansion.

He also underlined the government's continued efforts to augment gas supply in support of the country's economic diversification goals.

Local gas consumption has been growing at an average annual rate of 11 per cent over the last five years, he said, driven in part by the increasing requirements of the industrial sector and escalating electricity demand, which is growing at the rate of 8 per cent annually.

The government, he said, was also carefully balancing gas allocations for LNG exports, enhanced oil recovery, and local industries. To meet the galloping demand for natural gas, drilling programmes targeting tight gas and deep wells at depths of up to 7 kilometres have been launched. Some volumes of gas are also being imported, he added.