The Ministry of Energy and Minerals announced the launch of a new package of oil and gas concession areas during the International Conference and Exhibition of the American Association of Petroleum Geologists (AAPG). Hosted by Petroleum Development Oman (PDO), the event takes place at the Oman Convention and Exhibition Center from September 30 to 2 October 2024. Under the patronage of HH Sayyid Dr Fahad Al Julanda Al Said President of Sultan Qaboos University, and with the presence of HE Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals the announcement marks a significant step in Omans energy industry.
HE Eng Salim Nasser Al Aufi Minister of Energy and Minerals said in his keynote at the conference
I am delighted to welcome you to the opening of the inaugural edition of the International Conference and Exhibition of the American Association of Petroleum Geologists (AAPG) here in the Sultanate of Oman. This global gathering serves as a vital platform for exchanging knowledge and expertise in the field of geology and oil and gas exploration. As an industry crucial to supporting national economies and providing energy to the world, this conference plays a pivotal role in driving innovation and progress.
Oman's geological tapestry is woven with an extraordinary diversity, where oil and gas reserves are dispersed across vast desert expanses inland and the expansive coastal regions. This geological richness offers unparalleled opportunities to explore and develop our energy resources, i e the bedrock of our national economy.
Geologists with their expertise and cutting-edge tools, unveil the hidden treasures beneath the surface, providing the scientific foundation for their exploitation. Armed with advanced geological techniques, they offer precise insights and detailed information about rock formations and hydrocarbon reservoirs, guiding us towards informed decisions regarding drilling and exploration.
Technology has become an indispensable component of oil and gas exploration. Advanced techniques such as geological modeling and enhanced oil recovery significantly improve exploration efficiency, increase returns, and mitigate risks. These technological innovations enable us to optimize our natural resources, even in the most challenging environments and complex conditions.
I am confident that this conference will serve as an excellent platform to foster collaboration among companies, researchers, and experts in the oil and gas industry, and contribute to developing new strategies that support the sustainability of the energy industry and meet the needs of future generations.
As H.E. Eng. Mohsen bin Hamad Al-Hadrami, Undersecretary of the Ministry of Energy and Minerals, announced in his address, the ministry is introducing a new investment approach to further unlock the potential of Oman's energy resources. This strategic move aims to attract foreign investment and strengthen partnerships with the national operator, OQ Exploration and Production, ensuring the efficient and innovative development of our energy assets.
His Excellency further elaborated that the new package encompasses several concession areas, both onshore and offshore. Among these is ‘Concession Block 18,’ which we are pleased to announce today at this conference. This block holds significant untapped hydrocarbon resources, presenting substantial opportunities for both conventional and unconventional exploration and development. Situated in the southern part of the Sea of Oman, Block 18 covers an expansive area of 21,140 square kilometers, making it one of the largest offshore concession areas in the Sultanate.
His Excellency highlighted that the new approach enhances investment opportunities and contributes to sustainable development in the energy industry, aligning with Oman’s strategic objectives. He noted that the new measures include implementing a concessionary regime based on royalty fees, along with permitting integrated gas projects, thereby enhancing the attractiveness of these areas for investment. Moreover, OQ Exploration and Production will have the right to contribute 10% to exploration costs, with the possibility of increasing this contribution to 30% in the event of transitioning to commercial development.
His Excellency asserted that this initiative aligns with the Ministry's broader efforts to attract international investments, maximize the value of our natural resources, and drive sustainable development. Oman's robust infrastructure, qualified workforce, global-standard petroleum services, and the deep geological expertise of OQ Exploration and Production make it an ideal investment destination.
Concluding his remarks, His Excellency emphasized that this package represents a significant step forward in driving sustainable development within the energy industry and bolstering the national economy, in alignment with Oman Vision 2040.
This international conference will serve as a platform to showcase Oman's unique geological wealth and ambitious exploration and production plans, featuring a comprehensive technical program that highlights the latest advancements and innovations in geosciences.
The conference, themed 'The Role of Geosciences in Shaping the Future of Energy,' brings together experts from 60 countries to discuss the latest advancements, challenges, and opportunities in the field. As the host, Petroleum Development Oman is committed to providing a distinguished platform for fruitful discussions and knowledge exchange, while highlighting the Sultanate's significant contributions to the energy industry.
PDO will present a series of panel discussions led by company leaders and experts, including Dr. Aflah al-Hadhrami, Managing Director, Kim Code, Executive Director of Assets, and Hassan al-Barwani, Chief Information and Digitilisation Officer. The company will also showcase its commitment to sustainable growth through exploration and development activities, aligned with its vision of building a sustainable, low-carbon future. By leveraging advanced technologies such as seismic surveys and enhanced oil recovery, PDO aims to ensure Oman's long-term energy security. As a pioneer in enhanced oil recovery and polymer technologies, PDO is dedicated to maximizing production from mature and depleted assets in a sustainable manner.
The conference's technical program offers a rich array of panel discussions and workshops led by global experts, providing attendees with insights into the latest advancements in geosciences. Additionally, it serves as a platform for companies, ministries, and government agencies to showcase diverse career opportunities in the energy industry.
Recognizing the importance of nurturing the next generation of geologists, the conference will offer specialized programs for young professionals and students, providing networking opportunities, career guidance, and the chance to interact with industry experts.