Oman’s Ministry of Energy and Minerals has announced the launch of a new package of oil and gas concession areas during the international conference of the American Association of Petroleum Geologists (AAPG) held at the Oman Convention and Exhibition Centre.

In his speech, Minister of Energy and Minerals, Salem bin Nasser Al Aufi, highlighted Oman’s diverse geological landscape, with oil and gas reserves spread across different environments, including desert areas and offshore regions along its coastline, providing varied opportunities for exploration and development of energy resources that are crucial for the national economy.

The new concession areas include Concession Area No. 18, located in the southern part of Oman Sea. This area, which covers approximately 21,140 square kilometers, is one of the largest offshore concession areas in Oman and holds untapped hydrocarbon resources, said Mohsin bin Hamad Al-Hadhrami, the Undersecretary of the Ministry of Energy and Minerals in Oman.

He noted that Oman is introducing a new approach to investment in the oil and gas sector, aiming to attract foreign investment and enhance partnerships with the national operator, OQ Exploration and Production, to develop and utilize Oman’s energy resources efficiently and innovatively.

The new investment approach includes the implementation of a contractual system based on concession fees (royalties) and allows for the establishment of integrated projects for gas exploitation.

OQ Exploration and Production will have the right to participate in Concession Area No. 18 with a 10% share in exploration expenses, with the potential of increasing its share to 30% if the project advances to commercial development.