Omani-Chinese venture wins oil exploration contract

Oman has contracted an Omani-Chinese oil exploration and producing venture to explore and develop an oil concession area.

The arrangement will boost the sultanate’s oil and gas reserves, expanding production rates in a stretch of 1,389 sq km, called area no. 15, in Al Dhahirah governorate, state-run Oman News Agency reported.

Muscat-headquartered Daleel Petroleum Co will undertake a set of geological and geophysical studies, reprocess existing seismic data, conduct a 3D seismic survey and drill several wells to assess the hydrocarbon potential in the area.

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The company is a joint venture between Mezoon Petrogas, a subsidiary of MB Holding and Mezoon Petrogas BVI, a unit of China National Petroleum Corporation.

Daleel Petroleum won the contract after its success in developing concession area no. 5 with high efficiency and raising its daily oil production from 5,000 to 50,000 barrels per day, said Dr Salah Hafiz Al Dhahab, director general of investment at the ministry of energy and minerals.

Last month, the Omani unit of Stockholm-headquartered Tethys Oil received funding from a UAE bank for its oil exploration blocks in the country.

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Tethys Oil Block 3&4 Limited secured a five-year OR60 ($156 million) loan facility from Abu Dhabi Commercial Bank to support capital expenditure for blocks 3 and 4 in Oman.

Local media reported in August that bilateral trade between Oman and China increased by 8 percent year on year in the first five months of 2024 to more than $15 billion.

Chinese investment in Oman stood at over $6.6 billion, with 76 percent in the energy and petrochemicals sector, according to data reported by Al Roya newspaper.