Oman extends Area 53 oil concession to 2050, unlocking $30 billion investment
BUSINESS REPORTER
MUSCAT, MAY 18
The Ministry of Energy and Minerals has signed an agreement to extend the Concession Area 53 license until 2050 with Occidental Mukhaizna and its consortium partners: OQ Exploration and Production, Indian Oil Corporation, Liwa, and PTT Exploration and Production.
This strategic move aims to ensure the continued development of the Mahzaina oil field, which currently boasts the highest daily crude production in the Sultanate of Oman. The extension will also advance oil recovery through cutting-edge steam injection technology and development of the Thulaylat reservoir.
Under the new agreement, investments are expected to reach around $30 billion over the concession period. These include both capital and operational expenditures to boost production efficiency and implement state-of-the-art extraction techniques for better resource utilization.
The planned investments will also bolster the sustainability of the sector's supply chain and service contracts, stimulating broader economic activity and generating new employment opportunities in Oman's oil and gas industry.
Commenting on the agreement, Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, stated: "The extension of Concession Agreement No. 53 represents a pivotal step towards ensuring the continued contribution of this vital field to the national economy. The anticipated investment volume will contribute to developing production and enhancing the added value of the energy sector in the Sultanate of Oman. We are committed to continuing to work with our partners to maximize the potential available in Concession Area No. 53, which is a fundamental pillar in our plans to sustain production efficiently and responsibly."
The agreement underscores Oman's commitment to maintaining a resilient and forward-looking oil and gas sector—one that continues to serve as a cornerstone of national income through responsible resource management and the adoption of global best practices.
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