Reuters reported that a consortium led by US oil and chemicals company Occidental Petroleum has won a concession from the Omani government for gas exploration and development in central Oman.

As per report, the project partners, including state owned Oman Oil will conduct an intensive exploration program that comprises drilling exploration wells and developing four fields. The ministry was in final talks with two companies for oil and gas exploration projects and the agreements would be signed in January 2008.

While helping to provide Oman with much needed additional gas production for domestic needs, the Habiba project could also help strengthen cooperative efforts between the UAE and its neighbor to develop regional gas supplies and infrastructure.

In October 2008, Occidental said that it had signed a preliminary agreement with Abu Dhabi National Oil Company to develop two oil and gas fields in that emirate.