Oman to award new onshore blocks in 2012

Oman is set to award at least three new hydrocarbon blocks to international oil companies later this year.

The blocks mainly include onshore acreage spread across the Sultanate.

Oman oil and gas ministry under-secretary Nasser bin Khamis al Jashmi was quoted by Oman Daily Observer as saying that his company expects to sign away three to four blocks this year.

"Negotiations with the bidders concerned, which are new international companies, are mostly over and we are close to signing exploration and production sharing agreements covering these blocks," Al Jashmi said.

The blocks in question are not farm-out agreements from Petroleum Development Oman’s (PDO) Block 6 concession, but would form part of acreage that will receive investment from international players.

Blocks that were out for tenders late last year, for which bids are still awaited, have not been considered for concessions this year.

Currently, about 22 international companies are exploring and producing oil and gas from various blocks in the Sultanate.

Earlier this month, Harvest Natural Resources reported that its onshore Al Ghubar North-1 exploration well reached a total depth of 10,482ft.

In January 2012, Oman launched the 2012 Oman Bid Round, wherein four onshore blocks were offered for onshore exploration and production.

Bids for the four blocks, including Block 51, 54, 55 and 58, are to be submitted by 3 March 2012.