The gas pipeline project between Oman and Iran, which was first initiated in 2013, is now back on the track following the recent visit of Iranian President Dr Ebrahim Raisi to the Sultanate of Oman.
Dr Mohammed bin Hamad al Rumhy, Minister of Energy and Minerals, has said that that MoUs have been signed by two countries for the two gas pipeline projects and the development of the Hengam oilfield.
He said the offshore oilfield is crucial as the Iranian side seeks to benefit from the gas pipeline project vis re-exports.
The two sides have agreed to form a technical team to review the gas pipeline project, and it may be noted that the agreement first signed in 2013 was supposed to have a length of 400 sqm.
“It is expected to pump about 28 million cubic metres of gas for a period of 15 years from Iran to Oman.”
He added that the two sides are seeking to develop the Hengam oil field in concession Area 8 located in Musandam Governorate on the maritime border between the Sultanate of Oman and the Islamic Republic of Iran, stressing that the two countries agreed upon developing the field so that both sides will mutually benefit from oil extraction and reducing any damages.
Dr Rumhy said the new oil discoveries by companies operating in Oman will contribute to increasing production by between 50,000 and 100,000 barrels over the next two or three years.
The minister confirmed that all efforts will continue in the development of oil exploration to meet the production requirements in line with the market situation.
He said that the existing projects in the gas sector are the Jebal Khuff project and Shell Company's Block 10, Block 12 by Total and Block 77 by BP and Eni.
Expressing optimism about the improvement of conditions for the gas sector in the coming years, the minister noted that the Sultanate of Oman's reserves of crude oil currently amount to 5.2 billion barrels, while gas reserves are about 24 trillion cubic feet.
The minister said it is difficult to predict oil prices due to the conditions resulting from the Russia-Ukraine war and the current trends will remain until the end of this year.
He said that the global economy will continue to grow and that there are several factors that may help stabilise these prices.