Addendum to Block 5 Concession Deal Signed: Key Business Implications for Investors in Oman’s Energy Sector
Muscat: The Ministry of Energy and Minerals has signed an additional addendum to the Exploration and Production Sharing Agreement (EPSA) for Oil Concession Block 5, situated in the Al Dhahirah Governorate and operated by Daleel Petroleum.
The agreement was signed on behalf of the Government of the Sultanate of Oman by Eng. Salim bin Nasser al Aufi, Minister of Energy and Minerals. Also present at the signing were Mohammed bin Ali al Barwani, Chairman of Mazoon Petrogas SAOC, and Wang Guihai, Vice-President of Mazoon Petrogas Limited.
This new addendum supports the Ministry’s ongoing efforts to sustain annual oil and gas production levels while expanding future reserves. It aligns with the Ministry’s mission to regulate and develop the energy and minerals sectors, ensuring the optimal use of national resources according to the highest standards of occupational health, safety, and environmental protection.
The addendum introduces a financial incentive mechanism aimed at boosting production by enhancing development of producing fields and continuing exploration activities with advanced technologies in the oil and gas sector. It also commits to intensifying drilling operations and implementing enhanced oil recovery (EOR) programs. These initiatives reflect the Ministry’s vision of efficient and innovative resource development to bolster the national economy.
Daleel Petroleum is recognized as a leading operator in efficiently managing oil fields by minimizing operational costs and maximizing output. The company has achieved a 98% Omanisation rate, demonstrating its dedication to local content by developing national skills and empowering small and medium enterprises (SMEs). Over the past five years, Daleel Petroleum has invested more than RO 4 million in community service projects.
— Oman News Agency (ONA)
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The new EPSA addendum for Block 5 signals Oman’s strategic commitment to sustaining and boosting oil production through innovative technologies and enhanced recovery techniques, presenting a robust opportunity for businesses linked to the energy sector and tech providers. However, the emphasis on operational efficiency and Omanisation underscores a shift towards local content empowerment, which smart investors and entrepreneurs should consider by aligning ventures to support national workforce development and SME integration for long-term gains.
