04 October 2015
Muscat: Oman government plans to award an oil and gas block to an international oil company on production sharing basis before the end of 2015, a senior official of the Ministry of Oil and Gas, told Times of Oman.
This is close on the heels of awarding Block 54 to Oman Lasso Exploration and Production Karwan last month.
"We have signed an agreement recently and I expect may be one more before the end of the year," said Salim bin Nasser Al Aufi, undersecretary at the Ministry of Oil and Gas.
He said that the block identified for awarding is Block 7, which is currently in operation in central Oman.
Al Aufi said that with oil prices dipping to recent lows, multinational energy firms are either slowing down their investment in new concession areas in Oman or asking for much more favourable terms.
Oman government has been encouraging multinational oil giants to find new reservoirs in a move to sustain production levels. As huge investment is required for bringing crude oil and natural gas above the ground in view of the peculiar nature of reservoirs in the Sultanate, the government has been encouraging multinational firms to undertake exploration on production sharing basis.
However, with oil prices dipping by more than 45 per cent in less than a year, few companies have discarded their concession areas.
Crude production at 980,000bpd
Al Aufi expects the Sultanate's average daily crude oil production to touch 980,000 barrels this year, which is in line with the projection early this year. In July, Oman's daily average production crossed one million barrels for the first time.
Last month, the Ministry of Oil and Gas signed a new exploration and production sharing agreement (EPSA) with Oman Lasso Exploration and Production Karwan.
The US firm will explore oil and natural gas in Block 54, which has an area of 5,632 square kilometres and located in Al Wusta Governorate. The agreement allows the company to drill several wells. The government does not bear any financial commitments during exploration period.
According to latest available figures, twenty-nine oil blocks have already been awarded to international firms for exploration and in recent years. Some of these blocks started producing oil, while others are in various stages of studies and development.
Presently, multinational oil companies contribute 30 per cent of total crude production, while majority state-owned Petroleum Development Oman (PDO) constitutes the remaining 70 per cent oil output.
Muscat: Oman government plans to award an oil and gas block to an international oil company on production sharing basis before the end of 2015, a senior official of the Ministry of Oil and Gas, told Times of Oman.
This is close on the heels of awarding Block 54 to Oman Lasso Exploration and Production Karwan last month.
"We have signed an agreement recently and I expect may be one more before the end of the year," said Salim bin Nasser Al Aufi, undersecretary at the Ministry of Oil and Gas.
He said that the block identified for awarding is Block 7, which is currently in operation in central Oman.
Al Aufi said that with oil prices dipping to recent lows, multinational energy firms are either slowing down their investment in new concession areas in Oman or asking for much more favourable terms.
Oman government has been encouraging multinational oil giants to find new reservoirs in a move to sustain production levels. As huge investment is required for bringing crude oil and natural gas above the ground in view of the peculiar nature of reservoirs in the Sultanate, the government has been encouraging multinational firms to undertake exploration on production sharing basis.
However, with oil prices dipping by more than 45 per cent in less than a year, few companies have discarded their concession areas.
Crude production at 980,000bpd
Al Aufi expects the Sultanate's average daily crude oil production to touch 980,000 barrels this year, which is in line with the projection early this year. In July, Oman's daily average production crossed one million barrels for the first time.
Last month, the Ministry of Oil and Gas signed a new exploration and production sharing agreement (EPSA) with Oman Lasso Exploration and Production Karwan.
The US firm will explore oil and natural gas in Block 54, which has an area of 5,632 square kilometres and located in Al Wusta Governorate. The agreement allows the company to drill several wells. The government does not bear any financial commitments during exploration period.
According to latest available figures, twenty-nine oil blocks have already been awarded to international firms for exploration and in recent years. Some of these blocks started producing oil, while others are in various stages of studies and development.
Presently, multinational oil companies contribute 30 per cent of total crude production, while majority state-owned Petroleum Development Oman (PDO) constitutes the remaining 70 per cent oil output.
© Times of Oman 2015
