Oman signs concession agreement to expand oil, gas exploration

Muscat: Represented by the Ministry of Energy and Minerals, the Sultanate of Oman today signed an agreement with Daleel Petroleum Company (the operator) to explore and develop Concession Area No. 15 in Al Dhahirah Governorate.

The concession agreement constitutes a strategic step towards enhancing oil and gas reserves and expanding production rates through the resources of Area No. 15, a stretch of 1,389 square kilometres.

Daleel Petroleum Company will undertake a set of geological and geophysical studies, reprocess existing seismic data, conduct a 3D seismic survey and drill several wells to assess the hydrocarbon potential in the designated area.
The agreement was signed on behalf of the Government of the Sultanate of Oman by Salim Nasser Al Aufi,Minister of Energy and Minerals, and two executives: the Founder and Chairman of the Board of Directors of Mohammed Al Barwani Group and Vice President of the People’s Republic of China’s national development corporation.

Dr. Salah Hafiz Al Dhahab, Director General of Investment at the Ministry of Energy and Minerals, said that Daleel Petroleum company was awarded the contract (as the operator) due to its success in developing Concession Area No. 5 with high efficiency and raising its daily oil production from 5,000 to more than 50,000 barrels per day.

Al Dhahab attributed the company’s success to its strategy of investing in advanced technology and continuous development, which, he explained, reflected in its ability to maintain competitive operating costs.

Al Dhahab added that the agreement embodies the government's confidence in national companies operating in the sector, while at the same time underlines Oman’s keenness to consolidate its relationship with Chinese partners, opening the way for more cooperation opportunities that would attract foreign investments.