Addendum to concession deal for Block 5 signed

MUSCAT: The Ministry of Energy and Minerals signed an additional addendum to the Exploration and Production Sharing Agreement (EPSA) for Oil Concession Block 5, located in the Al Dhahirah Governorate and operated by Daleel Petroleum.
Signing the agreement on behalf of the Government of the Sultanate of Oman was Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals. Also participating in the signing were Mohammed bin Ali al Barwani, Chairman of Mazoon Petrogas SAOC, and Wang Guihai, Vice-President of Mazoon Petrogas Limited.
This signing comes within the framework of the Ministry of Energy and Minerals' efforts to maintain annual oil and gas production levels and increase the volume of future reserves. This aligns with its mission to regulate and develop the energy and minerals sectors, ensuring the optimal utilisation of national wealth according to the highest standards of occupational health, safety and environmental protection.
The new addendum introduces a stimulating financial mechanism that contributes to raising production rates through the development of producing fields and continuing exploration work using the latest technologies in the oil and gas sector. The agreement also includes a commitment to intensify drilling activities and enhanced oil recovery (EOR) programmes, which is consistent with the Ministry of Energy and Minerals' vision for developing and utilising energy resources with high efficiency and innovation to support the national economy.
Daleel Petroleum is considered one of the leading companies in managing oil fields with high efficiency by reducing operating costs and increasing production. The company has also achieved an Omanisation rate of 98 per cent, confirming its commitment to supporting local content through the development of national capabilities and the empowerment of small and medium enterprises (SMEs). Over the past five years, the company has spent more than RO 4 million on projects serving the local community. — ONA