New initiatives to unlock Oman’s offshore oil potential

25 Apr 2024

MUSCAT: Oman’s vast and untapped offshore hydrocarbon sector holds the key to potentially unlocking resources that will help sustain the country’s oil and gas production over the long-term, according to a top official of the Ministry of Energy and Minerals.

Mohsin al Hadhrami, Under-Secretary, said the Ministry has approved plans for the drilling of new wells to help boost production from the relatively small number of offshore fields currently in operation, underscoring the promise of this new frontier.

“Offshore oil development and utilization stand as a strategic imperative for Oman, playing a crucial role in maintaining oil production, enhancing the nation›s production capacity, and securing a stable supply of energy both domestically and internationally,” the official stated in an interview featured in ‘Wealth’, the newsletter of the Ministry.

According to the official, Oman’s offshore production – while minuscule at present – relies on three strategically located platforms deployed in the far north of the country and off the eastern seaboard.

First to be deployed was the Bukha platform in 1994, followed by the West Bukha platform in 2009, both targeting hydrocarbons in Block 8 off Musandam Governorate. More recently, in 2020, the Yumna Field platform was stationed off Masirah Island to produce oil from the Yumna field in Block 50. Output from the field has so far amounted to around 8 million barrels of oil.

Significantly, the Ministry has approved several initiatives for drilling new wells to maintain and boost production on all offshore production platforms, Al Hadhrami said, while also underlining the government’s vision to develop the country’s offshore potential through investments in new platforms.

“Oman possesses a network of offshore oil extraction platforms, and we are actively expanding our utilization of these resources to protect reserves and assure long-term supply by leveraging on technological advances to raise production, improve process efficiency, and develop exploration. With our industry partners, we aspire to develop offshore oil platforms and strengthen the infrastructure required for efficient oil extraction and transportation,” he explained.

All three offshore fields currently under production in Oman are located in shallow water no deeper than 100 metres, underscoring the promising potential of this burgeoning sector for further investment and development, the Under-Secretary noted.

“With varying degrees of reliance on offshore oil extraction, countries like Oman are at the forefront of this endeavour, leveraging their expertise and specialized technologies to harness the vast energy potential beneath the seabed. Oman boasts a rich history of offshore oil exploration and production, utilizing cutting-edge techniques and specialized equipment to extract and refine crude oil,” he added.

The only other offshore concession currently being explored for hydrocarbons is Block 52, located off Oman’s southern and southeastern coast. Italian-based international energy firm Eni (with 55% interest) is the operator of this massive 90,000 sq km concession, with the rest held by Qatar Energy (30%) and OQEP (15%).