The Ministry of Energy and Minerals organized the Energy and Minerals Forum in the North and South Sharqiyah Governorates on October 27, 2024. The event was attended by His Excellency Mohsin Hamad al-Hadhrami, Undersecretary of the Ministry of Energy and Minerals, and His Excellency Mahmood Yahya al-Dhahli, Governor of North Sharqiyah. The forum aimed to enhance community engagement, foster community participation, and work collaboratively to achieve national goals and vision. The forum highlighted the ministry's current and future projects, focusing on its role in achieving Oman Vision 2040, which seeks to diversify the economy and maximize the utilization of natural resources and renewable energy. This vision aims to make these resources a cornerstone of sustainable development, providing promising opportunities for growth and prosperity while protecting the environment and developing the community.
In his speech at the forum, His Excellency Mohsin Hamad al-Hadhrami, Undersecretary of the Ministry of Energy and Minerals, emphasized, "This forum aims to show the ministry's plans and strategies, as well as investment opportunities in the energy and minerals sector, including oil and gas, renewable energy, hydrogen, and minerals. This is based on the optimal utilization of financial and human resources, and the use of modern technologies to exploit natural resources." He added, "The ministry reaffirms its commitment to regulating and developing the energy and minerals sector in accordance with the highest standards of occupational health and safety and environmental protection, with a focus on developing and exploiting energy and mineral resources efficiently and innovatively to support the national economy, guided by the values of credibility, transparency, initiative, precision in accomplishment, and teamwork to enhance partnerships with all relevant stakeholders."
His Excellency Mahmood Yahya al-Dhahli, Governor of North Sharqiyah, stated, "The Energy and Minerals Forum hosted today in Bidyah provides an opportunity to explore the energy and minerals sectors and highlight the most important projects and investment opportunities in a number of governorates within North Sharqiyah. Undoubtedly, this will contribute to supporting the economic development and Oman's Vision 2040." He added, "The forum has provided a platform for attendees to discuss challenges, adopt best practices, and engage in community dialogue with both local community representatives and officials." His Excellency affirmed that the forum has achieved its objectives by building institutional integration, fostering community partnerships, and highlight the ministry's role in managing and utilizing natural resources, promoting transparency, and constructive dialogue to address challenges and achieve common goals.
The forum was attended by high-level officials, including members of the State Council, Shura Council, and governors, as well as representatives from government and private sector entities involved in the minerals sector.
The Ministry of Energy and Minerals organized the Energy and Minerals Forum in the North and South Sharqiyah Governorates on October 27, 2024. The event was attended by His Excellency Mohsin Hamad al-Hadhrami, Undersecretary of the Ministry of Energy and Minerals, and His Excellency Mahmood Yahya al-Dhahli, Governor of North Sharqiyah. The forum aimed to enhance community engagement, foster community participation, and work collaboratively to achieve national goals and vision. The forum highlighted the ministry's current and future projects, focusing on its role in achieving Oman Vision 2040, which seeks to diversify the economy and maximize the utilization of natural resources and renewable energy. This vision aims to make these resources a cornerstone of sustainable development, providing promising opportunities for growth and prosperity while protecting the environment and developing the community.
In his speech at the forum, His Excellency Mohsin Hamad al-Hadhrami, Undersecretary of the Ministry of Energy and Minerals, emphasized, "This forum aims to show the ministry's plans and strategies, as well as investment opportunities in the energy and minerals sector, including oil and gas, renewable energy, hydrogen, and minerals. This is based on the optimal utilization of financial and human resources, and the use of modern technologies to exploit natural resources." He added, "The ministry reaffirms its commitment to regulating and developing the energy and minerals sector in accordance with the highest standards of occupational health and safety and environmental protection, with a focus on developing and exploiting energy and mineral resources efficiently and innovatively to support the national economy, guided by the values of credibility, transparency, initiative, precision in accomplishment, and teamwork to enhance partnerships with all relevant stakeholders."
His Excellency Mahmood Yahya al-Dhahli, Governor of North Sharqiyah, stated, "The Energy and Minerals Forum hosted today in Bidyah provides an opportunity to explore the energy and minerals sectors and highlight the most important projects and investment opportunities in a number of governorates within North Sharqiyah. Undoubtedly, this will contribute to supporting the economic development and Oman's Vision 2040." He added, "The forum has provided a platform for attendees to discuss challenges, adopt best practices, and engage in community dialogue with both local community representatives and officials." His Excellency affirmed that the forum has achieved its objectives by building institutional integration, fostering community partnerships, and highlight the ministry's role in managing and utilizing natural resources, promoting transparency, and constructive dialogue to address challenges and achieve common goals.
The forum was attended by high-level officials, including members of the State Council, Shura Council, and governors, as well as representatives from government and private sector entities involved in the minerals sector.
The forum included a panel discussion led by a number of directors general from the ministry, where they discussed the most prominent challenges facing the sector and presented innovative solutions to optimize the usage of natural resources. The session also aimed to promote transparency and openness, highlight investment opportunities available in North and South Sharqiyah Governorates, and emphasize the role of community partnerships in achieving sustainable development.
The forum's program included three presentations that outlined the features of the minerals sector in the Sultanate of Oman, addressing key sector indicators, updates on concession areas and public sites, as well as investment mechanisms, initiatives, enablers, and projects that support the development of this sector. The presentations also presented the smart monitoring project and the marketing plan for mineral sector investments to enhance its sustainability by attracting local and foreign investments and improving the regulatory environment, with a focus on achieving a balance between economic, social, and environmental development and contributing to the development of local communities.
Engineer Saud Khamis al-Mahrouqi, Director General of Minerals, indicated that the minerals sector in the Sultanate of Oman recorded a production of 70.4 million tons in 2023, with exports reaching 40 million tons and achieving sales of 113 million Omani rials. The Omanization rate in the sector reached approximately 17%, while 8 mining licenses and 12 exploration licenses were issued.
Al-Mahrouqi presented the current status of concession areas, which include 17 operational and 7 under evaluation. Six new areas are expected to be launched in the fourth quarter of 2024 via the "Taqa" platform. Investments in these areas will be based on an auction system, with companies required to adhere to financial and operational standards.
He also highlighted investment opportunities in concession areas, including those managed by Minerals Development Oman (MDO) and others offered through the "Taqa" platform. The aim is to boost local content by developing complementary industries and look to advanced exploration technologies.
Al-Mahrouqi announced the initiation of copper mining operations within the minerals sector. Concurrent with this, the ministry is actively implementing strategies to increase Omanization and develop local talent. Furthermore, a cutting-edge smart monitoring project is underway, leveraging advanced data analytics to enhance compliance with financial, administrative, health, safety, and environmental regulations in the mining industry. This project aims to streamline oversight and follow-up procedures. The North Sharqiyah Governorate boasts 34 mining licenses for a diverse range of minerals including lateritic copper, chromium, manganese, marble, bentonite, and construction materials. Similarly, the South Sharqiyah Governorate holds 20 licenses for manganese, marble, construction materials, and bentonite.
Furthermore, he discussed the Al Washhi copper mine in Mudhaybi, with estimated reserves of 16.1 million tons. The project aims to produce 50,000 tons of copper ore monthly. He also mentioned plans to develop a public site for building materials in Ibra to meet local demand and promote sustainable mining practices.
Al-Mahrouqi explained that Mining Concession Area 21 has been designated to Knights Bay Mining Company. The aim is to develop nickel, cobalt, and iron ores from laterite deposits. The estimated investment in the project is between 25 and 30 million US dollars over the first three years. He also mentioned that the company is currently in the exploration phase in the area and aims to be one of the first companies producing high-purity nickel in the Sultanate of Oman using clean energy in its mining operations.
He emphasized the role of the minerals sector in social responsibility, where companies allocate 1% of their revenues to development projects in local communities. The Ministry of Energy and Minerals, in cooperation with governorate offices, oversees these contributions to ensure their use in areas that support sustainable development, such as supporting social and youth initiatives and social service projects.
Al-Mahrouqi concluded by displaying the significance of the "Taqa" platform launched by the ministry. This platform facilitates the provision of digital services in the mining sector by simplifying the licensing process and investment tracking. The platform aims to present mining opportunities in a transparent and clear manner, creating a conducive environment to attract investors, thus contributing to the realization of Oman's vision for sustainable development of the minerals sector.
Following this, Dr. Firas Al Abdwani, Director General of Renewable Energy and Hydrogen, delivered a presentation that delved into Oman's comprehensive energy transition strategy. This strategy outlines ambitious plans and future projects designed to expedite the shift towards renewable energy sources and green hydrogen production. The overarching goal is to achieve net-zero emissions by 2050, thereby diversifying the economy and fostering the growth of a low-carbon energy sector and associated industries.
Al-Abdwani demonstrated Oman's abundant renewable energy potential. Royal Decree 2023/10 has designated a substantial 65,000 square kilometers of land for solar and wind energy projects. This allocation has the capacity to generate a staggering 500 gigawatts of renewable energy, surpassing Oman's projected electricity demand and green hydrogen production by 2050. The Sultanate is also blessed with plentiful solar resources, receiving up to 2500 kilowatt-hours of solar irradiation per square meter annually. Furthermore, some locations offer wind energy capacity factors of up to 53%, as estimated by the Ministry of Energy and Minerals.
He also presented upcoming projects in North and South Al Sharqiyah, including a 280 MW solar plant in Al Kamil Wal Wafi and a 100 MW wind farm in Jaalan Bani Buali. These projects aim to increase local renewable energy production by 20% annually until 2026.
Al-Abdwani indicated that the Sultanate aims to increase the share of renewable energy in the electricity mix to 30% by 2030. This will be achieved through the development of new solar and wind energy projects, in addition to gas-fired power plants. Currently, the national energy mix relies on 95% natural gas, and the Sultanate seeks to reduce this proportion to 70% by 2030, enhancing the sustainability of the sector and meeting future energy needs.
Dr. Firas noted the substantial increase in Oman's renewable energy projects, including plans for a 1,000 MW solar plant by 2025, a 500 MW wind farm by 2027, and a 140 MW waste-to-energy facility in Barka. These projects will significantly boost the country's renewable energy production, supporting its sustainable energy goals.
The Sultanate has finished the initial phase of evaluating pumped hydropower systems, he noted. These systems can store excess energy and release it during peak demand, balancing the grid and supporting the nation’s sustainability objectives.
Dr. Al-Abdwani also touched on the ambitious green hydrogen projects, where the Sultanate aims to enhance its production in this field to become a regional leader. Plans include the production of 1.25 million tons of green hydrogen annually by 2030, with the Sultanate targeting an increase in production to 8 million tons by 2050. This is accompanied by efforts to strengthen the necessary infrastructure to attract international investments and support the transition to a green economy.
He concluded by reaffirming Oman's dedication to renewable energy and green hydrogen, positioning the Sultanate as a regional clean energy leader. This commitment aligns with Oman's broader goals of a sustainable and low-carbon future.
In the third presentation, Engineer Hamad Al-Sawafi, Director of Oil Production Regulation, outlined the features of the oil and gas sector in the Sultanate of Oman. He demonstrated Oman's role as a major player in the global energy market, with a focus on sustainable production, strengthening partnerships, and investing in modern technologies to achieve national objectives in the sector.
He began his presentation by discussing Oman's substantial oil reserves of around 5 billion barrels and natural gas reserves of approximately 23 trillion cubic feet, Al-Sawafi also noted that the country produces about 1 million barrels of oil and 5 billion cubic feet of natural gas daily, promoting its ability to meet growing demand.
The presentation also addressed the crucial role played by operating companies in supporting the sector. The list includes national companies such as Oman Oil Company, OQ Group, and Daleel, as well as major international companies like Shell, BP, and TotalEnergies. The Omani government's relationship with these companies is managed through exploration and production sharing agreements, fostering cooperation and partnership between the public and private sectors. He emphasized the stimulating investment environment in the Sultanate, which attracts foreign investment and enables the application of best international practices in exploration and production operations.
Al-Sawafi highlighted key development projects in North and South Al Sharqiyah. In North Al Sharqiyah, he mentioned Block 51, operated by Occidental Oman for exploration, and Block 3, operated by CC Energy Development Oman, producing nearly 19,000 barrels of oil daily. In South Al Sharqiyah, Block 50, operated by Masirah Oil Ltd, produces around 2,500 barrels per day, while other exploration projects are underway to boost reserves.
Among the prominent projects mentioned in the presentation was Oman Liquefied Natural Gas (LNG), which plays a pivotal role in enhancing Oman's gas exports. Al-Sawafi explained that the company's production capacity stands at 11.5 million tons per year, with an Omanization rate of 96%. The company has solidified its position in global markets by exporting 173 liquefied natural gas cargoes in 2023, with a focus on renewing expiring contracts to ensure continued exports beyond 2025.
He ended the presentation by displaying digital transformation projects, including the National Oil and Gas Data Repository for data collection and analysis, and an asset management system for streamlined operations, these initiatives aim to improve resource management and operational efficiency.
He ended the presentation by displaying digital transformation projects, including the National Oil and Gas Data Repository for data collection and analysis, and an asset management system for streamlined operations, these initiatives aim to improve resource management and operational efficiency.