Sunday 05 / May / 2024
Muscat: The reserves of liquefied natural gas (LNG) rose by 7 percent to 24 trillion cubic feet in 2022 compared to the corresponding period of 2021.
The annual report issued by the Ministry of Energy and Minerals indicated that the expected total reserves of crude oil and condensate oil expected by the end of 2022 amounted to 4,905 million barrels, up by one percent compared to the previous year, while
The annual report issued by the Ministry of Energy and Minerals (MEM) further indicated that the expected total reserves of crude oil and condensate oil expected at the end of 2022 amounted to 4,905 million barrels, up by one percent compared to the previous year.
At the end of last year, the number of companies operating in concession areas in the field of oil and gas exploration and production was 18 and 37 respectively. The total oil exports of crude oil and condensate during the year amounted to about 318 million barrels, with China ranked first in the list of countries importing Omani oil with a rate of 81.7 percent.
The Ministry of Energy and Minerals in a statement on Saturday said that it also signed one new petroleum agreement in the year 2022 with Shell Integrated Gas Oman in Concession No. 11, where the value of the agreed investment for the first period amounted to $105 million.
Oil production in the Sultanate of Oman increased during the year 2022, with an average daily production of 1.64 million barrels, compared to 971,000 in 2021, an increase of 9.6 percent, as the Sultanate of Oman maintained the same production levels of oil, in line with the production reduction agreement signed with the countries. Members of the Organisation of the Petroleum Exporting Countries (Opec) and other countries outside the organisation, to achieve a balance between global supply and demand for oil.
The total production of natural gas, plus imports, amounted to 52,61,870,000 cubic metres, with an average daily production of 142.6 million cubic metres.
The average price of Omani crude oil during the year 2022 was about $36.95 per barrel, recording a 48 percent increase from what it was in 2021, while the price of a barrel of Omani crude oil ranged between $14.73 per barrel as a minimum in February and $112.93 per barrel as a maximum in August of the same year.
The percentage of Omanisation among operating companies in the upper and lower parts of the oil and gas sector increased to about 89 percent in 2022, with an increase in the number of Omani employees of about 1.3 percent compared to that of 2021.
With regard to electricity, the total production in 2022 amounted to about 41.8 terawatts/hour, with a net production of 40.4 terawatts/hour, an increase of 2 percent compared to the previous year. The net electricity produced from natural gas amounted to 37.2 terawatts/hour, constituting 92 percent of the total. Energy sources are used to produce electricity, and the production of electricity from solar energy continued to increase by 138 percent compared to 2021, with the continued operation of the Ibri 2 station of the Shams Al Dhahirah Company for electricity generation.
The sector witnessed a number of basic projects, most notably the electrical interconnection project between the north and south of the Sultanate of Oman, the project to connect Masirah Island to the main electricity grid, the project to establish the Barka plant to produce energy from waste, wind energy projects, and the solar energy stations Amin, Qabas, Ibri 2, and the two stations.
With regard to the minerals sector, the total exports of the Sultanate of Oman of mineral ores amounted to approximately 36.5 million tonnes, registering a decrease of 2 percent compared to 2021, as the amount of building materials exports decreased by 3 million tonnes, and building materials constitute 54 percent of the total amount of raw materials exports. While exports of gypsum and dolomite ore increased by two million tonnes compared to 2021. The total number of mining licenses issued in 2022 amounted to about three, while 18 exploration licenses were issued.
The Ministry of Energy and Minerals, along with its partners, made great efforts in regulating the hydrogen sector in order to achieve the targeted results, as the ministry took important steps towards accelerating the procedures for regulating this sector, setting the legal frameworks and policies necessary for its growth, and working to study the sites of its production and storage in order to attract and localise investments. The Ministry announced the launch of investment opportunities and incentives in the green hydrogen sector.
The Ministry is working with partners to strengthen the role of the Sultanate of Oman with the countries of the world in energy transition plans towards reducing carbon emissions, achieving a balance between sustainable development and limiting the repercussions of climate change, which were produced by the Carbon Management Laboratory, which was supervised by the Ministry of Energy and Minerals, in line with the steps taken. Taken under the directives of the Supreme to declare the achievement of zero carbon neutrality in 2050.
Regarding production in the minerals sector in the Sultanate of Oman, the report indicated that the total production of mineral ores during the year 2022 amounted to 63.6 million tonnes, registering a decrease of 8 percent compared to 2021, as the amount of gypsum and building materials production decreased by 6 million, which constitute 79 percent of the total production. These decreases are attributed to the contraction in the demand for these materials, and the total sales of minerals amounted to 57.3 million tonnes, at a value of OMR98.974 million.
The Ministry of Energy and Minerals continues its efforts by enhancing the participation of local companies in contracts and procurement, as electronic bidding has been activated by companies operating the supplier registration system to support small and medium-sized companies obtaining business in contracts with service companies and contractors. The number of contracts awarded through electronic bidding reached 242, in addition to achieving a number of achievements in the field of localisation of business opportunities and supplier development programmes for the oil and gas sector. In addition, a supervisory committee was formed for the governance of local added value, and task forces for contracts, procurement and human resources were formed, to develop plans and initiatives that help support local companies and employ Omani cadres.
The projects that were inaugurated in 2022 in the field of energy, represented by OQ liquefied petroleum gas plant in Salalah, which is the first of its kind for gas processing in the Sultanate of Oman, with a total investment value of approximately OMR318 million, and the plant came as one of the most important energy projects as it contributes to strengthening the value chain gas in the Sultanate of Oman through the extraction of natural gas liquids through gas networks and pipelines. In addition, the Ibri solar energy project was inaugurated for OMR155 million (about $400 million) with a capacity of 500 megawatts.
The Rima water treatment plant has also been put into operation, which represents an environmentally friendly solution to replace the discharge of water associated with production in the deep layers. The plant will be able to treat about 65,000 cubic litres of water per day, save energy consumption by 10 megawatts, and reduce greenhouse gases by 53,000 tonnes annually.
The Ministry of Energy and Minerals attaches great importance to social responsibility, by directing companies to allocate a budget for joint social responsibility projects and initiatives, as well as strengthening companies' efforts for projects that have an active role in society and that concern sustainability.
