Oman continues to invest in drilling and exploration

Revenues from oil for the first nine months of 2015 fell 45.5% from last year

The Omani government continues to invest in drilling and exploration in the oil and gas sector projects, according to Dr. Mohammad Bin Hamad Al Rumhy, Minister of Oil and Gas in a statement to Al Watan newspaper.

Al Rumhy said that the approach of the Ministry of Oil and Gas is to implement important projects in cooperation with oil majors operating in the sultanate to add value and on projects aimed at boosting employment and training.

He said the expected government expenditure on oil and gas exploration in 2015 stands at about 407.1 million Omani riyals (Dh3.88 billion).

“The actual expected spending over the government projects to develop and expand the gas facilities and utilities by the end of 2015 stood at about 2160.1 million riyals,” Al Rumhy said.

He also said that the cost of gas purchase during the 8th five-year plan stood at about 305 million riyals. The expected actual spending for the transportation of gas, paid by Oman Gas Company, by the end of 2015 will be about 164.8 million riyals.

The Minister of Oil and Gas said the general objectives of the oil and gas sector in the 9th Five-Year Plan will be to increase the sector’s contribution to the diversification of the economy through industries based on oil and gas.

He mentioned that the ministry is making efforts to translate these strategies by developing programmes to seek new oil and gas wells and raise natural gas production to cover current and future needs.

He also said that the public and private partnership has paid well and resulted in developing standard criteria for the In-Country-Value (ICV) for the oil companies tenders.