The branch continues exploration efforts for crude oil and condensate production to help meet developing demand.
According to Dr. Mohammed bin Hamad al Rumhy, Minister of Energy and Minerals, new hydrocarbon discoveries through electricity corporations consistent with the Sultanate of Oman will increase the country’s production between 50,000 and 100,000 barrels per day (bpd) over the next 2-3 years.
Speaking to the Oman News Agency (ONA), Dr Al Rumhy said the ministry is continuing exploration efforts to maintain crude oil and condensate production to help meet developing demand.
A multitude of projects underway recently in fuel exploration and progression will also contribute to oil production, Dr. Al Rumhy said. It includes projects to unlock the fuel perspective of the Grand Barik region, adding Shell Block 10, TotalEnergies Block 12 and Italian Company ENI Block 77.
The minister expressed optimism about the outlook for the fuel sector in the coming years, noting that fuel reserves lately hover around 24 trillion cubic feet (TCF). Crude oil reserves are estimated lately at 5. 2 billion barrels.
Commenting on the memorandums recently signed by the Sultanate of Oman with Iran, Dr. Al Rumhy explained that the pacts fear the structure of an oil pipeline linking the two countries, in parallel with the advance of the Henjam oil box that extends on both sides of its maritime borders. The Iranian side, he said, is willing to make the most of the pipeline allocation to re-export its fuel volumes with a view to diversifying its use.
The two sides, he said, agreed to form a technical team to review the pipeline allocation first agreed in 2013. With a total duration of 400 kilometers, the pipeline will pump 28 million cubic meters of Iranian fuel from day to day. Sultanate of Oman for a constant period of 15 years.
In addition, the two countries are reading efforts to expand the Henjam oil box off the coast of Musandam governorate, along the maritime border between the Sultanate of Oman and the Islamic Republic of Iran. Both sides want a non-unusual plan to expand the box without damaging the deposit.
Commenting on foreign improvements in oil prices, Dr Al Rumhy said prices are expected to remain at the highest levels at least until the end of this year due to the Russian-Ukrainian war and other factors.
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