Sunday 19 / May / 2024
Muscat: Dr. Mohammed Hamad Al Rumhy, Minister of Energy and Minerals, has announced about new oil discoveries made by companies operating in the Sultanate of Oman.
He hoped that the finds will augment production by 50,000 to 100,000 barrels over the next three years.
Dr. Mohammed told Oman News Agency (ONA) that his ministry is pressing ahead with the development of the excavation field so that Oman could sustain its current rate of output from crude oil and condensates and keep pace with market trends over the future.
The minister explained that the existing projects in the oil sector will contribute to the output, and these include the Jibal Khaf project and a project undertaken by Shell company to develop block No. 10. The efforts also include a bid to explore block 12 through Total company and block 77 through Italy’s IDI company.
Dr. Mohammed expressed optimism that conditions in the oil and gas sector will continue to improve over the next few years.
He pointed out that Oman’s crude oil reserves stand at 5.2 billion barrels, while gas reserves stand at 24 trillion cubic feet.
Speaking about memoranda of understanding (MoUs) signed by the Sultanate of Oman with the Iranian side, the minister said that these deal with the development of gas pipelines connecting the two countries, as well as the Henjam oilfield.
He said that the MoUs reflected the desire of Iranian side to benefit from the existing oil pipeline in exports and to consider the best alternatives for the consumption of gas and the supply of major projects with the commodity.
The minister added that the two sides agreed to form a technical team to revise the gas pipeline. He noted that the 400-km pipeline, which is the outcome of an agreement signed in 2013 is capable of pumping 28 million cubic feet of gas for 15 years from Iran to the Sultanate.
He said that the two sides agreed to develop Henjam oilfield within concession area No. 8, which falls in the Governorate of Musandam along marine borders between Oman and Iran.
He affirmed that the two countries agreed to develop the oilfield with a view to maximising benefits and minimising losses. In other comments, the minister said that it is difficult to anticipate the future of oil prices due to the ongoing Russia-Ukraine war.
“Oil prices may remain at the current rate, at least until the end of this year, and they might relegate to their pre-war levels,” opined the minister, hoping that the global economy would see further growth.
He said that many factors are at play and may maintain the stability of these prices, with a foreseeable such scenario through the rest of this year and the beginning of next year.
— With ONA inputs
