Oman Offers 5 Oil and Gas Leases

Oman's Energy and Minerals Ministry on Sunday opened bidding applications for five new oil and gas concession areas.

Blocks 12 and 16 span 5,050 square kilometers (1,949.81 miles) and 4,496 sqkm respectively in the Greater Barik Area in central Oman, the ministry said in a press release.

Blocks 42 and 45 cover 30,682 sqkm and 5,483 sqkm respectively in the Sharqiyah Sands Basin and surrounding areas.

Block 55 offers 7,564 sqkm in the Eastern Flank Province.

Registration ends September 30. Proposals will undergo "technical and financial evaluation", the ministry said.

The offer aims to strengthen the Gulf country's partnerships with international companies, it said, though the auction is also open to local players.

"The ministry affirmed that the offering of these areas comes as part of its ongoing approach to enhancing an attractive investment environment based on the principles of transparency and equal opportunities, thereby contributing to attracting quality investments, transferring modern technologies, and maximizing the added value of the oil and gas sector", it said.

Earlier this year the government signed a concession agreement with Oman's state-owned OQ Exploration and Production SAOG (OQEP) and Malaysia's state-owned Petroliam Nasional Bhd (Petronas) for an offshore block. Block 18 spans over 21,000 sqkm in the Gulf of Oman, according to the ministry.

"It is considered one of the offshore areas with diverse geological potential, despite the technical challenges associated with exploration and drilling in deep waters, as no confirmed discoveries have previously been made in the block", it said in an online statement February 12.

"The agreement includes an initial exploration period of four years, which may be extended, with the possibility of declaring commerciality and granting a production concession for a period of up to 30 years", the ministry said.

Petronas is operator with a 70 percent stake. OQEP owns 30 percent.

According to the latest "Annual Statistical Bulletin" of the Organization of the Petroleum Exporting Countries (OPEC), Oman had 4.97 billion barrels of proven oil reserves in 2024, the seventh-iggest in the Middle East. Oman is not a member but an ally of OPEC through the OPEC+ organization.

To contact the author, email jov.onsat@rigzone.com