Oman launches bids for new oil and gas blocks

24/03/2025 04:58 AST

With an aim to meet Oman's energy needs, the Ministry of Energy and Minerals has announced to offer major concession areas for oil and gas exploration that have immense potential. This comes as part of the ministry's efforts to increase production and conserve reserves to ensure the continuity of energy supplies to both local and global markets.

"In the last quarter of 2024 and in the current year, the ministry offered certain areas under a new concession system, different from the previous one, through Scotchbank and AQP, to encourage and attract investors in these areas," said Dr. Salah bin Hafiz Al-Dhahab, Director General of Investment at the Ministry of Energy and Minerals. >A3

In a statement to the Oman News Agency, he said that these include Block 18 in the Sea of Oman, Block 36, Block 43, and Block 66 onshore. He further added that a number of companies operating in the exploration, drilling, and development of the energy sector have expressed keen interest in competing for these blocks.

He added that the application period for these areas will be until June, after which negotiations will begin with the selected companies.

He explained that the Ministry of Energy and Minerals is focusing on increasing production capacity, attracting investments, accelerating field development, and facilitating the development process, not only in new exploration areas but also in older producing fields that are currently facing production hurdles.

He further elaborated that has added three key incentives to attracts bidders. These include the use of the royalty system to facilitate commercial activity, the inclusion of OQ B as an optional partner in this regard, and the possibility of utilising the produced gas in direct manufacturing or integrated projects.

Times of Oman