Oman's Oil and Gas Concessions: Key Developments and Statistics

Strategic Insights -

In the mid-1990s, Oman's Ministry of Petroleum and Mineral Resources offered 13 concessions to international oil and gas companies. The offer included 11 blocks relinquished by the Petroleum Development Oman (PDO), a 12th tract from Block 3 relinquished by Amoco, and a 13th tract from Occidental. The tender was released in October 1995, and companies had the opportunity to view technical information on each block and make their bids. The closing bid date was extended from February 17, 1996, to March 2, 1996.

Key Takeaways:

  • Eight of the blocks offered were onshore in the Dhofar province, while five were offshore in the Strait of Hormuz, the Gulf of Oman, and the Arabian Sea.
  • Total was the first company to get a concession, Block 4, in July 1995, with a size of 26,000 sq km.
  • Oil India got a 20% stake in Block 4 in September 1998.
  • Elf, along with Sumitomo and Wintershall, got a concession in an adjacent block in September 1995, with its first well drilled in 1997.
  • Phillips got Block 36, on the Saudi/Yemeni borders, in June 1996, with a size of 18,527 sq km, and was to spend $37m in 9 years and drill 5 wells.
  • Maersk Oil & Gas bought a 25% stake in this concession in 1997.
  • Phillips also got Block 38, in the S-W, in June 1999, under a 10-year PSA, with a size of 18,000 sq km, and was to spend $29m in the first 3 years and begin drilling in 2000.
  • Arco and Partex got the 3,800 sq km Block 32 in the N-E, with a spending commitment of $41m in 7 years and 5 wells.
  • Nimir Petroleum of Saudi Arabia took the 15,000 sq km Block 3 in the N-E on January 25, 1997, with a spending commitment of $50.5m in 8 years and 6 wells.
  • Occidental (Oxy) got the 7,157 sq km gas-rich Block 31 in the N-W on September 29, 1997, with a spending commitment of $45m in 7 years and 3 wells.
  • Oxy also got gas-rich Blocks 27 and 44 in June 1998.
  • Triton Energy of Dallas got gas-rich Block 22, 8,271 sq km, near Masirah island in the Arabian Sea in June 1996, with a spending commitment of $38m over 8 years and 5 wells.
  • Triton also got offshore and gas-rich Block 40, 5,353 sq km, in the Hormuz Strait in June 1998, with a spending commitment of $30m in 8 years and 4 wells.
  • Shell got offshore Block 18 near the Batina coast in March 1999, with a spending commitment of $3m in a 3-year exploration programme.

Statistics:

  • Total size of the concessions offered: approximately 446,000 sq km
  • Number of blocks offered: 13
  • Number of onshore blocks: 8
  • Number of offshore blocks: 5
  • Total spending commitment: approximately $887.5 million
  • Number of wells to be drilled: 38
  • Number of countries participating: 7 (Oman, Saudi Arabia, Yemen, Canada, Japan, Australia, and South Korea)
  • Number of companies participating: 11 (Total, Oil India, Elf, Sumitomo, Wintershall, Phillips, Maersk Oil & Gas, Arco, Partex, Nimir Petroleum, and Triton Energy)

Sources:

  • Ministry of Petroleum and Mineral Resources, Oman
  • Petroleum Development Oman (PDO)
  • Total
  • Oil India
  • Elf
  • Sumitomo
  • Wintershall
  • Phillips
  • Maersk Oil & Gas
  • Arco
  • Partex
  • Nimir Petroleum
  • Occidental (Oxy)
  • Triton Energy
  • Shell
  • Novus Petroleum of Australia
  • International Petroleum Corp. (IPC) of Canada
  • LG Group of South Korea
  • Heritage Oil & Gas of the UK