Oil and gas sector receives $5.8bln investment in H1: Oman

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Muscat – Oman’s oil and gas sector witnessed US$5.84bn in total investments in exploration, production, and development of projects during the first half of this year, according to a senior official from the Ministry of Energy and Minerals (MEM).

Of the total investments, nearly 62% were capital expenditures in activities such as geological surveys, drilling, facilities development, etc, while the remaining 38% were operating expenses, said Dr Saleh bin Ali al Anbouri, Director General of Oil and Gas Exploration and Production at MEM, in a statement to Oman News Agency.

Anbouri mentioned that, during the current year, oil companies operating in Oman drilled many exploration wells in various oil and gas concession areas targeting different reserves and depths. He added that oil companies in Oman are increasing the number of exploration wells through continuous supervision and follow-up by the ministry.

“The initial results from the drilling campaigns indicate that some wells are promising and will be confirmed through long-term testing that may extend for several months or more, while others need further study and testing. This will contribute to maintaining stable levels of production and reserves.”

He revealed that unoccupied oil and gas concession areas in Oman will be open for investment, adding, “the ministry welcomes any investor who wishes to negotiate these concessions, as it promotes them through bidding rounds.”

Speaking about the oil blocks bidding round launched at the beginning of 2023 for Blocks 15, 36, and 54, Anbouri said the ministry received great interest from several local and international companies for these offered blocks. He added that the ministry is currently evaluating the offers from the companies, and these blocks ‘will be awarded soon’.

Regarding Oman’s oil production cuts under the OPEC+ agreement, Anbouri confirmed that the sultanate is currently committed to its agreement with the OPEC+ alliance to reduce its production of crude oil. Earlier in May, Oman had announced its voluntary reduction of 40,000 barrels per day of crude oil.