The Ministry of Energy and Minerals (MEM) announced a new package of oil and gas concession areas distributed between marine and onshore areas, including Concession Area 18 located in the southern Sea of Oman, during the American Society of Petroleum Geologists International Conference on Monday.
The opening ceremony of the conference and its accompanying exhibition was hosted by the Petroleum Development Company.
Mohsen bin Hamad al Hadhrami, Undersecretary of the Ministry of Energy and Minerals, revealed that the ministry has added a new approach to investment in the oil and gas sectors, noting that this step comes within the framework of the ongoing efforts to attract foreign investments and enhance the partnership with the national operator OQ Exploration and Production to develop and exploit energy resources in the Sultanate of Oman efficiently.
Concession Area 18 includes fully untapped hydrocarbon resources and covers an area estimated at 21,140 sqm, which will make it one of the largest offshore concession areas in the Sultanate of Oman, noting that the new procedures include the application of a contractual system based on concession fees "royalty" in addition to allowing the establishment of integrated projects to exploit gas.
"OQ Exploration and Production Oil" will have the right to contribute to Concession Area No18 by 10 percent in exploration expenses with the possibility of raising the contribution to 30 percent in the event of a transition to commercial development.
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