Ministry uses auction system to optimise use of minerals
The Ministry of Energy and Minerals accords great attention to attracting investors and major companies to compete in open concession areas, in the oil, gas and minerals sectors.
The Ministry also takes measures to ensure optimal exploitation of mineral resources with which the Sultanate of Oman abounds.
It enacts laws and legislation that ensure the proper use of these resources and attract investors to make use of modern technologies, develop local added value of mineral resources and increase their contribution to the gross domestic product (GDP).
Oman possesses investment potential that would encourage local and foreign investors to engage in various investments in the field of energy and minerals.
The advantages include the strategic location overlooking regional and international sea lanes and the existence of Omani ports capable of exporting oil, gas and minerals to various countries of the world.
Dr. Salah Hafeez Al Dhahab, Director General of Investments at the Ministry of Energy and Minerals, said that the Ministry’s plan for the oil and gas sector aims to ensure that petroleum concession areas garner not less than 75 percent of the total petroleum concession areas identified in Oman.
Al Dhahab added that the plan focuses on the intensification of exploration operations, ensuring productivity and reduction in the cost of extraction operations, while at the same time ensuring quality and safety and using carbon emission reduction.
The Ministry also checks companies’ commitment to obligations in accordance with the agreements and requirements specified in their respective contracts.
Renewable energy
He explained that the Ministry’s plan for the renewable energy and hydrogen sector deals with enacting laws and regulating the sector in a manner that guarantees the sustainability of investment, acting in cooperation with Oman Energy Development Company and Hydrogen Oman. Hydrogen
Oman offers investment opportunities in the field of energy through specific bids and conditions. Oman envisages that, by 2030, it would be one of the largest hydrogen exporters in the region, he observed.
Al Dhahab pointed out that the Ministry implemented the bidding system with the aim of optimally exploiting mineral resources to advance development and economic diversification, besides attracting and developing local and foreign investments by introducing real investment opportunities.