Oman is vigorously pursuing new investment in its oil and gas sector in 2025, launching several licensing rounds and extending key concessions to bolster production capacity and ensure long-term energy security.
The overarching goal is to expand production, accelerate field development, and secure a stable energy supply for both domestic and international markets, while offering revised royalty systems and incentives to encourage participation.
In H1, the Ministry of Energy and Minerals introduced exploration opportunities including Block 18 in the Sea of Oman, and onshore Blocks 36, 43A, and 66.
Block 36, located in the Ghudun Basin within the Rub al Khali region, spans 18,557 sq km; Block 43A, covering 6,920 sq km is in the Buraimi area; and Block 66, on the eastern flank of the Rub al Khali Basin, covers 4,898 sq km.
The application period for these blocks is expected to remain open until June 2025.
While specific winning bids for these newly invited blocks have not yet been announced, several companies in the exploration, drilling, and development sector have reportedly expressed interest.
Additionally, the Ministry and state-owned OQ Exploration & Production (OQEP) are actively marketing 11 new concession blocks in 2025, including Block 18 in the Sea of Oman and other unspecified onshore areas,
These upcoming blocks are part of Oman's broader strategy to increase its crude oil production to 1.3 million barrels per day (bpd) by the end of the decade, up from the current 1 million bpd.
Furthermore, Petroleum Development Oman (PDO) has invited expressions of interest (EoIs) for the development of "Area A" within Block 6.
This 130-sq-km area in the Qarn Alam Cluster, within the prolific Ghaba Basin, is believed to hold over 1 billion barrels of stock tank oil initially in place.
The deadline for EoI submissions for Area A was June 5, 2025.
Separately, the Occidental Mukhaizna consortium, which includes Oxy Oman, OQEP, Indian Oil Corporation, Liwa Energy Limited, and PTTEP, in May secured a significant 15-year extension for its exploration and production sharing agreement (EPSA) for the onshore Block 53, (Mukhaizna Field), Oman’s largest oil field.
This extension, for operations until 2040, aims to unlock over 800 million barrels of additional resources and involves an estimated investment of $30 billion over the extended term.
