Oman NEWS

The agreement to further develop the Hengam oilfield, which straddles Iran and Oman’s offshore waters, follows an MoU signed last year

Muscat: Oil and gas companies in Oman are increasingly adding green practices into their operations, to help sustain the environments in which they operate over the long-term. While some choose to recycle the water brought up to the surface during oil extraction by building wetlands that help local species of animals and birds thrive while reducing desertification, others are setting up facilities that produce far fewer pollutants during the process of oil refining.

The recent talks between Oman’s Assistant to the Chief of Staff for Operations and Planning, Brigadier Abdulaziz Abdullah al-Manthri, and the Chief of Staff of Iranian Armed Forces, Major-General Mohammad Bagheri, may mark a new phase in the already deep and broad relationship between Oman and Iran, and in the Sultanate’s drift into the Iran-China axis. “The two countries [Iran and Oman] have conducted several joint naval drills in recent years, within the scope of securing the waterway from the Persian Gulf through to the Gulf of Oman from smuggling and other threats, including terrorism, but these [recent] talks were concerned with expanding that cooperation both in terms of the armed services involved beyond just the navy and the scope of their joint activities beyond anti-smuggling and dealing with terrorist threats,” an Iranian source who works closely the Petroleum Ministry told OilPrice.com last week. The basic catch-22 for Oman that has expedited its move towards the Iran-China power axis is that it lacks the scale of natural resources to generate the financing required to keep its economy ticking over without any further industry but the industry that it is looking to diversify its economy with – petrochemicals – requires a lot of upfront financing before it pays off.

The OPEC+ group is not concerned about a possible release from the U.S. Strategic Petroleum Reserve (SPR), according to Oman's Energy Minister Mohammed Al-Rumhi cited by FXStreet. U.S. President Joe Biden is considering a possible release from the strategic American crude stockpiles as a way to bring down high gasoline prices. No decision has been made yet amid debates within the Administration, but calls for a release from the SPR have become louder in recent days.

McDermott International has secured a FEED contract from Total Oman E&P Development in partnership with Oman Oil Company S.O.A.C. This contract is for the Sohar LNG bunkering project in Oman and the work will start immediately. Senior VP of McDermott said, "This award is a reflection of McDermott's 60-year history of delivering innovative LNG solutions worldwide, beginning with our tank storage solutions in the 1950s, to our liquefaction capabilities today".

PTT Exploration and Production Public Co Ltd (PTTEP) has decided to acquire Partex Holding BV. The acquisition will be worth approximately US$622mn. This decision will help PTTEP expand in Oman and open the gates for future investment opportunities in the Middle East. "This acquisition will allow us to create a new business partnership with both national oil companies of Oman and the UAE,” said PTTEP's CEO.

Oil extends gains from the previous session following the attacks on two oil tankers in the Gulf of Oman. This incident has stirred up the concerns of reduced crude flows through one of the world’s key shipping routes. Brent crude increased by 0.8% and was traded at $61.81 a barrel. WTI rose by 0.4% and was traded at $52.49 a barrel.

Petrofac has been awarded a £60 million procurement services contract by Petroleum Development Oman. This contract is a part of a framework agreement signed by Petrofac in 2017. Regional Manager of the company said, "The procurement and management activities for this project will be undertaken from Petrofac’s Muscat office from where we provide first-class expertise in high-value order management".

Oman LNG LLC has awarded the FEED contract for the LNG debottlenecking project at Sur facility to EPC giant, KBR Inc. The terms of the contract require KBR to deliver FEED services to carry out the debottlenecking project at the facility. The project aims at increasing production at Sur facility. The contract award to KBR reinforces Oman LNG’s commitment to knowledge sharing and enhancing staff competency.

Total has signed a Heads of Agreement (HoD) with the Ministry of Oil and Gas of the Sultanate of Oman. Under the scope of the agreement, Total will be granted the exploration license on Block 12 in Central Oman with. A definitive agreement in the coming months will give Total 100% working interest and operatorship of the exploration block with significant prospective gas resources.

Oman’s Ministry of Oil and Gas has reached an interim agreement with oil supermajors Shell and Total in order to develop integrated gas projects in the country. Signed on Wednesday, the agreement puts into detail the funding and a work plan for 2019 to develop the gas resources to fulfill Oman’s rising energy demand.

DNO Oman Block 8 Limited has given up operatorship and participation in Oman Block 8 to Sultanate of Oman's Ministry of Oil and Gas and state-owned Oman Oil Company Exploration and Production LLC, informed DNO ASA. DNO Oman Block 8 Limited is a subsidiary of DNO ASA. In the handover ceremony held at Muscat, DNO’s MD informed that Block 8 produced 35 MMbbl of oil.

US oilfield service provider, Petrofac has secured a $115 million contract for the development of the Qarn Alam Co-Generation Project in Oman. The project will require Petrofac to install and commission a Gas Turbine Generator Package with one Heat Recovery Steam Generator at the power plant. The plant is intended to support oil extraction in Oman’s central region. The 36 month-long project will be managed from Petrofac’s Muscat office.

Baker Hughes, a GE company has taken an initiative to enhance oil production, optimize production and save costs in Oman. The energy major has joined forces with the Petroleum Development Oman (PDO) for the same. They will be opening the first artificial lift systems assembly and repair facility in Oman in order to support PDO’s operations and customers in the region.

After a bidding held by Oman Oil Company, Malaysia’s Petronas informed that its subsidiary, PC Oman Ventures Ltd, will buy 10% stakes in Al Khazzan gas field of Oman. The subsidiary of Petronas will procure the stakes in Block 61 of the field and its expected production capacity is 1.5 billion cubic feet per day by 2020. Oman Oil Company Exploration and Production has 40% stakes in the block.

Oman Oil Company entered into a partnership with Thailand-based Gulf Energy Development to construct the Duqm power and water plant project. The project is located in Duqm Special Economic Zone. With an installed capacity of around 326 MW, the Duqm project will be a 1,667 cubic metres per hour water facility. The project will support the Oman Oil’s Infrastructure Vertical strategic vision.

According to the daily National, Oman, the largest oil producer in the Middle East region, is looking forward to setting up deals with global oil giants like Shell, Total and Eni for hydrocarbon exploration in an attempt to raise production in the sultanate. The contracts would combine bilateral tie-ups, alongside awards offered last year in a licensing round.