- Concession Area No. 18 covers over 21,000 square kilometers both offshore and inland
- The move aims to bolster Oman’s hydro-carbon sector while balancing sustainable energy goals
Oman’s Ministry of Energy and Minerals has unveiled a new oil and gas concession, known as Area No. 18, which spans 21,140 square kilometers. Located both offshore and inland, the block contains undeveloped hydro-carbon resources with significant potential for energy exploration and development.
You need an active subscription to continue reading this article.
The announcement was made at the American Association of Petroleum Geologists’ international conference in Muscat, running from 30 September to 2 October.
Focus on Foreign Investment and Hydro-carbon Exploration
Several Omani ministers spoke about Concession Area No. 18 at the event, with Energy and Minerals Minister Salim Nasser Al Aufi emphasizing that the Sultanate has untapped deposits of gas and oil across both coastal and desert regions. Undersecretary for Energy and Minerals Mohsen Hamad Al Hadhrami highlighted the role of foreign investment and Oman’s state energy company, OQ Exploration and Production.
According to Al Hadhrami, OQ will contribute 10 percent toward exploratory costs in the new concession area, with the option to increase this to 30 percent upon commercial development.
“This package represents a significant step forward in driving sustainable development within the energy industry and bolstering the national economy in alignment with Oman Vision 2040,” Al Hadhrami said.
Balancing Hydro-carbon and Green Energy Expansion
While Concession Area No. 18 is crucial for maintaining Oman’s leadership in the global oil and gas market, this expansion in the hydro-carbon sector stands alongside the Sultanate’s plans for sustainable energy, with multiple solar and wind energy projects underway.
Despite Oman’s push for green energy, the economy is expected to remain reliant on carbon-based fuels for the foreseeable future.
