MUSCAT: The Ministry of Oil and Gas signed an agreement in the concession Block No 5 (Wadi Aswad); an area of 992 square kilometres with Daleel Petroleum Company, as a joint venture between Mazoon Petrogas Limited and Mazoon Petrogas (SAOC).
The agreement was signed on behalf of the Sultanate’s government by Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, Mohammed al Barwani, Chairman of the Board of Directors of Mazoon Petrogas Limited, and Zhang Sheng, Vice-President of Mazoon Petrogas.
Under the agreement, Daleel Petroleum Company is committed to continue production during the 15-year agreement.
On oil price fluctuations, Dr Al Rumhy said that there are many factors which influence oil prices and traditionally oil prices are mainly determined by supply and demand, but now the reasons for fluctuation in prices are outside supply and demand.
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