MUSCAT: The Ministry of Energy and Minerals aims to boost the contribution of the energy and minerals sectors to Oman's GDP and national income. The Ministry's strategy includes leveraging technology to enhance production at minimal costs.
The Ministry's 2023 annual report revealed that 63 exploratory and appraisal wells for oil and 15 for gas were drilled and evaluated. Positive indicators from petrophysical analyses and well productivity tests led to the addition of new oil and gas reserves.
By the end of 2023, Oman's crude oil and oil condensates reserves stood at approximately 4,971 million barrels, a 1 per cent increase from 2022. Natural gas reserves decreased by 5 per cent to about 23 trillion cubic feet.
Eighteen companies operated in 36 concession areas for oil and gas exploration and production by the end of 2023. Oman's oil exports, including crude oil and oil condensates, amounted to about 310 million barrels, with China importing 92 per cent of this total.
Daily production of crude oil and condensates averaged 1.05 million barrels in 2023, slightly down by 1.5 per cent from 2022. Natural gas production averaged about 142.5 million cubic metres per day, a 4 per cent increase from 2022, with 30.1 million cubic metres per day from associated gas and 112.4 million cubic metres per day from non-associated gas.
The average price of Omani crude oil in 2023 was approximately $82.3 per barrel, a 14 per cent decrease from the previous year. The price ranged from a low of $74.8 per barrel in August to a high of $92.8 per barrel in November.
In the minerals sector, the Ministry signed five agreements for the exploration and mining of potash and nickel ores in various locations. Total mineral raw materials sold in 2023 amounted to approximately 64.5 million tonnes, with a 3-million tonne increase in sales of limestone, gypsum, and plastic materials.
Mineral raw materials production in 2023 totaled about 70.4 million tonnes, a 7 per cent decrease from 2022, due to delays in monthly production reports from mining companies. Eight mining licences and twelve exploration licences were issued in 2023.
Renewable energy initiatives saw seven main regions highlighted: Dhofar, Duqm, Al-Jazar, Manah, Ibri, Sur, and Musandam. Six agreements were signed to produce green hydrogen in Duqm, Dhofar, and Al-Jazar.
Electricity production in 2023 reached about 44.4 terawatt-hours, a 6.4 per cent increase from the previous year. Renewable energy sources contributed nearly 2 terawatt-hours, a 5 per cent rise from 2022.
Engineer Salem bin Nasser Al Aufi, Minister of Energy and Minerals, emphasized the Ministry's commitment to utilizing advanced technology to support crude oil and condensates production and reserves. Efforts in local value addition included the establishment of a chemicals manufacturing factory in Oman and the completion of the first locally manufactured well-drilling platform.
In support of small and medium enterprises (SMEs), 16 per cent of the total value of purchases and tenders in the oil and gas sectors were allocated to SMEs.
Significant projects inaugurated in 2023 included the Al-Ghaisin copper mine in Al-Khaboura, expected to boost economic diversification with over 6 million tonnes of copper reserves at an average concentration of 2.04 per cent. Additionally, a solar energy station was launched in Sur to power the local water desalination plant.
The Ministry also committed to social responsibility, supporting three national projects with different partners, amounting to RO 2.500 million. — ONA
Oman Observer is now on the WhatsApp channel. Click here
