MUSCAT: Bids are currently under evaluation for four oil and gas blocks tendered by Oman’s Ministry of Energy and Minerals under the 2024–2025 licensing rounds.
According to officials involved in the marketing of the blocks, awards leading to investments in the development of this upstream acreage – located both onshore and offshore – are expected by early next year at the latest.
The blocks in question include three licenses – 36, 43A, and 66 – distributed along Oman’s international border with its western neighbours. The fourth license is Block 18, a large offshore concession in the southern Sea of Oman.
OQ Exploration & Production (OQEP), the majority Omani state-owned upstream subsidiary of OQ Group, has been tasked by the Ministry to support the marketing of these licenses, along with a host of other blocks. Assisting in this effort is Scotiabank, a leading Canadian multinational bank with a strong focus on international banking and capital markets.
In a recent discussion with stock market participants, Dr Anwar al Kharusi, Chief Executive Commercial at OQEP, provided an update on the company’s ongoing support for the Ministry in marketing the border concessions 36, 43A, and 66, under an initiative dubbed Project Sun.
“I want to highlight that we have been working closely with the government on the so-called Project Sun, which covers Oman’s border blocks 36, 43A, and 66. We have now obtained offers from selected potential operators and partners. At the moment, the government, together with OQEP and Scotiabank, is assessing these offers,” he said.
Dr Al Kharusi further added: “We have also received an offer on offshore Block 18, which we are analyzing. Hopefully, all of these four blocks will lead to investments by late 2025 or early 2026.”
The largest of the border licenses is Block 36, an expansive 18,557 km² concession straddling the Rub Al Khali desert in the far southwest of the Sultanate. Its exploration history is modest, with some rudimentary 2D seismic work undertaken and only one well (Hayah-1) drilled to date, which showed minor gas indications.
Further north, on the eastern flank of the Rub Al Khali basin, lies Block 66, a 4,898 km² license suited for exploration-driven companies interested in high-potential frontier areas. Its geology is similar to that of producing fields in Saudi Arabia. In Buraimi Governorate, Block 43A spans 6,920 km² and holds possible conventional oil prospects, with its proximity to producing fields in Buraimi considered a key advantage.
Block 18, meanwhile, covers a sprawling 21,140 km² offshore area in the southern part of the Sea of Oman. Under a new investment framework, OQEP holds the right to cover 10% of exploration costs, potentially rising to 30% if Block 18 transitions into commercial development.
All four blocks currently under evaluation are among 11 new oil and gas licenses that OQEP has been tasked with marketing in partnership with Scotiabank.
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