Times of Oman reported that Oman government is set to award two onshore oil and gas blocks for exploration to international oil firms in the Southern Dhofar region next month.

Dr Saleh A Al Anboori DG of Management of Petroleum Investment said that the Ministry of Oil and Gas has already finalized the terms and conditions of the deal for the proposed two blocks 38 and 66. Hopefully we will sign the pact by next month. We are finalizing the date for signing the agreement.

Dr Al Anboori said that the ministry will receive bids from multinational oil giants for another four oil blocks widely spread in the north and center of the country, by the end of this month. Thereafter, we will evaluate the bids for shortlisting companies. Then we will see the work program and the technology. We are favoring companies on the basis of best work program in pursuing the block, seismic studies, number of wells going to drill and technical capabilities.

He also revealed that now the ministry is compiling data for tendering another seven blocks four onshore and three offshore. The offshore blocks are 18, 41 and 59 and onshore blocks are 56, 57, 58 and 43A. These are mostly located in the south and north and include block 18, which was relinquished by India's Reliance Industries a couple of years ago.

Dr Al Anboori said that as many as 22 multinational firms are currently exploring for and in some cases producing oil in almost 25 concession blocks in the Sultanate under production sharing agreements. "Presently, multinational oil companies contribute 30% of total crude production while PDO constitutes the remaining 70% oil output.

CC Energy Development started producing oil at the rate of 14,000 barrels a day from last year. This is a promising sign of additional contribution from multinational companies operating in Oman. It will increase. Occidental and Daleel have also enhanced their crude oil production.

Dr Al Anboori said that the high oil prices are encouraging multinational giants to invest in Oman for oil field development. As huge investment is required for bringing oil above the ground in view of the peculiar nature of reservoirs in Oman, the government has been encouraging multinational firms to undertake exploration on production sharing basis.

Source - Times of Oman

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