Muscat: The Ministry of Energy and Minerals has announced the launch of a new bidding round for the exploration and development of three onshore oil and gas blocks, signaling continued efforts to attract investment into the sector.
The bidding process, conducted in partnership with OQ Exploration and Production Company (OQEP) and Scotiabank, offers opportunities in Blocks 36, 43A, and 66, which are located across Oman’s diverse geological basins. These blocks present significant potential for investors seeking to explore and develop the sultanate’s hydrocarbon resources.
“The Ministry of Energy and Minerals invites investors to participate in a competitive bidding process for oil and gas exploration in Blocks 36, 43A, and 66,” the ministry stated.
OQEP, in a regulatory filing, emphasized that this initiative is part of its ongoing collaboration with the ministry to enhance investment in the oil and gas sector. The company also expressed appreciation for the ministry’s continued support and partnership.
The allocation of these blocks will follow the ministry’s established procedures, including the signing of Concession Agreements and final ratification through Royal Decrees.
Block 66, covering 4,898 square kilometers, is located on the eastern edge of the Rub Al Khali Basin. Block 43A, spanning 6,920 square kilometers, is situated in the onshore Buraimi region. Meanwhile, Block 36, the largest among them, covers 18,557 square kilometers in the Ghudun Basin, which forms part of the vast Rub Al Khali Basin.
Oman’s oil and gas sector continues to be the primary driver of foreign direct investment (FDI), accounting for 79.1% of the nation’s total FDI stock. As of September 2024, total FDI in the sector stood at RO 21.112 billion, with new foreign investments reaching RO 3.439 billion in the first nine months of the year.
Despite the sector’s significance, Oman’s oil production declined by 5.1% in 2024, dropping to 363.29 million barrels from 382.77 million barrels recorded in the previous year. The daily average production also saw a 5.4% decrease, averaging 992,600 barrels per day compared to 1.05 million barrels per day in 2023.
The decline in output is largely attributed to Oman’s commitment to OPEC+ production agreements, which have influenced production levels across the region.
