Muscat – Ministry of Energy and Minerals has launched a new oil and gas concession – Area No 18 – in the southern Sea of Oman. Covering 21,140sqkm, this offshore block is one of the largest in the country, holding untapped hydrocarbon resources with considerable potential for energy exploration and development.

The announcement was made at the opening of a three-day international conference titled ‘The Role of Geological Sciences in Shaping the Future of Energy,’ organised by the American Association of Petroleum Geologists in Muscat. The event, hosted by Petroleum Development Oman, was inaugurated by H H Dr Sayyid Fahd al Julanda al Said, Vice-Chancellor of Sultan Qaboos University.

On the occasion, H E Salim Nasser al Aufi, Minister of Energy and Minerals, highlighted Oman’s diverse geological landscape, pointing out that oil and gas reserves are spread across both desert and coastal areas. This natural diversity, he noted, provides significant opportunities for energy exploration, which is vital to the nation’s economy.

H E Mohsen Hamad al Hadhrami, Undersecretary in the Ministry of Energy and Minerals, elaborated on a new approach to oil and gas investments, a key part of which is attracting foreign investment and enhancing collaboration with Oman’s national energy operator, OQ Exploration and Production. This is aimed at optimising the use of Oman’s energy resources.

Regarding Concession Area No 18, H E Hadhrami informed that OQ Exploration and Production will have the right to contribute 10% of exploration costs, with an option to increase this to 30% if the project moves to commercial development. He also outlined new contractual systems based on concession fees, with provisions for integrated gas exploration projects. “This package represents a significant step forward in driving sustainable development within the energy industry and bolstering the national economy in alignment with Oman Vision 2040.”

The conference, attended by experts from 60 countries, features discussions on the latest trends, challenges and opportunities in the future of energy. The event also includes an exhibition showcasing local and international oil and gas companies and their contributions to sustainable growth through exploration and development initiatives.

Concession Area No 18 is expected to play a significant role in further advancing Oman’s energy sector and bolstering its position as a key player in the global oil and gas market.

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