Oil and gas investments in Oman reach nearly $6bn

Oman News Agency

Total investment in oil and gas exploration, production and development in Oman reached $5.84 billion in the first half of 2023.

Capital expenditure, including geological surveys, drilling and facilities, accounted for 62 percent of total investment, while 38 percent was allocated to operating expenses, state-run Oman News Agency reported.

Oil companies drilled many exploratory wells in various oil and gas concession areas, said Saleh Al Abbouri, director general of oil and gas exploration and production at the ministry of energy and minerals.

• Oman signs 9-year LNG supply deal with BP
• Oman reports $2bn budget surplus despite drop in oil revenues
• Oman to develop rules for carbon capture and green hydrogen

He added that the initial results of some of the wells were “promising”.

The minister said that untapped concession areas are open for investment, noting that the ministry launched bidding earlier this year for blocks 15, 54 and 36.

The ministry is currently studying the offers, which will be assigned shortly.

Al Abbouri affirmed that Oman is currently committed to its agreement with Opec+ to reduce its production of crude oil.

The Sultanate has announced a voluntary reduction of 40,000 barrels per day of crude oil in May 2023, which will continue until December 2024.

Oman’s producer price index declined by 13 percent in the third quarter of 2023 quarter on quarter, according to the National Centre for Statistics and Information.

Prices of oil and gas products fell by 13.7 percent, while prices of non-oil products declined by 8.2 percent.

The decline in oil and gas product prices was due to a 16 percent fall in crude oil and natural gas prices, the government-owned statistical centre said.