Oman’s Ministry of Energy and Minerals has signed an agreement with Muscat’s Daleel Petroleum Company (the operator) to explore and develop concession area No. 15 in Al Dhahirah Governorate. The concession agreement is a strategic step towards enhancing oil and gas reserves. Moreover, it facilitates the expansion of production rates through the resources of the 1,389 square kilometer area.
Daleel Petroleum Company 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.
Salim Nasser Al Aufi, Minister of Energy and Minerals, signed the agreement with two executives: founder and chairman of the board of directors of Mohammed Al Barwani Group and vice-president of the People’s Republic of China’s National Development Corporation.
Dr. Salah Hafiz Al Dhahab, director general of investment at the ministry, said that the government awarded Daleel Petroleum the contract due to its success in developing Concession Area No. 5 with high efficiency. The company had previously raised the area’s daily oil production from 5,000 to more than 50,000 barrels per day.
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Al Dhahab attributed the company’s success to its strategy of investing in advanced technology and continuous development which reflected in its ability to maintain competitive operating costs.
Al Dhahab added that the agreement embodies the government’s confidence in national companies operating in the sector. At the same time, it underlines Oman’s keenness to consolidate its relationship with Chinese partners, opening the way for more cooperation opportunities that would attract foreign investments.
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