Fresh opportunities: Oman-Iran oilfield, gas pipeline projects to make headway
BUSINESS REPORTER
MUSCAT, JUNE 4
New hydrocarbon discoveries by energy companies operating in the Sultanate of Oman will help boost the country’s output by 50,000 – 100,000 barrels per day (bpd) over the next 2 – 3 years, according to Dr Mohammed bin Hamad al Rumhy, Minister of Energy and Minerals.
Speaking to Oman News Agency (ONA), Dr Al Rumhy (pictured) said the Ministry continues to support exploration efforts aimed at sustaining crude oil and condensate production to help meet demand growth.
A slew of projects currently underway in support of gas exploration and development will also contribute to oil production, Dr Al Rumhy said. It includes projects aimed at unlocking the gas potential of the Greater Barik area, including Block 10 by Shell, Block 12 by TotalEnergies, and Block 77 by Italian firm ENI.
The Minister also voiced optimism about prospects for the gas sector in the coming years, noting that gas reserves currently stand at about 24 trillion cubic feet (TCF). Crude oil reserves are currently estimated at 5.2 billion barrels.
Commenting on the MoUs signed by the Sultanate of Oman with Iran recently, Dr Al Rumhy explained that the pacts pertain to the construction of a gas pipeline linking the two countries, alongside the development of the Henjam oilfield straddling their maritime borders. The Iranian side, he said, is eager to make the most of the planned gas pipeline to re-export its gas volumes with a view to diversification its utilization.
The two sides, he said, have agreed to form a technical team to review the gas pipeline project first agreed in 2013. Covering a total length of 400 kilometres, the pipeline will pump 28 million cubic metres of Iranian gas per day to the Sultanate of Oman for a period of 15 years.
Additionally, the two countries are exploring efforts to develop the Henjam oilfield located off Musandam Governorate along the maritime border between the Sultanate of Oman and the Islamic Republic of Iran. Both sides have stressed the need for a common blueprint to develop the field without damaging the reservoir.
Commenting on international oil price trends, Dr Al Rumhy said prices are expected to remain at elevated levels at least until the end of this year because of the Russia-Ukraine war and other factors.
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