MUSCAT: The Ministry of Energy and Minerals has introduced a new concession system to attract investment in oil and gas exploration, offering key blocks with significant potential in the Sultanate of Oman. This initiative is part of the ministry’s broader strategy to enhance production, preserve reserves, and ensure a stable energy supply for local and international markets.
Dr Salah bin Hafiz al Dhahab, Director General of Investment at the ministry, stated that the new system differs from previous concession models. In the last quarter of 2024 and early 2025, the ministry introduced exploration opportunities through Scotiabank and OQ, aiming to draw investors to these strategic areas.
The available blocks include Block 18 in the Sea of Oman and Blocks 36, 43, and 66 onshore. Several companies in the exploration, drilling, and development sector have already expressed interest in securing these concessions. The application period will remain open until June 2025, after which negotiations will begin with the selected companies.
Dr Al Dhahab emphasized that the ministry’s focus is on expanding production capacity, accelerating field development, and facilitating investment, both in newly explored areas and in existing fields that face operational challenges. Some of the concession areas present geographic and geological difficulties, prompting the ministry to introduce key incentives to encourage investor participation.
These include a revised royalty system to support commercial activity, the option to include OQB as a partner to enhance project viability, and permission for companies to utilize produced gas for direct manufacturing or integrated projects. These measures are designed to make investments more attractive and support the long-term sustainability of Oman’s energy sector. – ONA
Oman Observer is now on the WhatsApp channel. Click here
