North Oman Gas & Condensate Discovery Under Test Production: Implications for Investors and Businesses in Oman
MUSCAT: A significant hydrocarbon discovery has been announced by US energy company Occidental (Oxy) in one of its concessions in northern Oman, which is currently undergoing production testing and evaluation of appraisal and development plans.
This announcement was made during the Q2 2025 Conference Call, hosted by senior executives at Occidental. Oxy Oman, a wholly owned subsidiary of Occidental Petroleum Corporation, stands as one of the largest independent investors in Oman’s upstream sector, with interests across eight blocks: 9, 27, 62, 30, 65, 51, 72, and 53.
The newly identified resource, referred to as the North Oman Gas & Condensate Discovery, is estimated to contain approximately 250 million barrels of oil equivalent (boe). The reservoir is currently in production testing, while plans for its appraisal and development are being assessed. Its proximity to existing infrastructure, including a gas plant with available capacity, represents a significant advantage.
The highlight of the conference call was largely focused on developments concerning Oxy Oman’s flagship asset, the Mukhaizna field in Block 53. A recent extension agreement with Oman’s Ministry of Energy and Minerals, involving Oxy and other shareholders of Block 53, is anticipated to deliver substantial value and align with Oman’s national objectives. Oxy indicated that there is potential to increase resources by over 800 million gross barrels from this field, promising competitive project returns.
Under the extension of the Block 53 Exploration and Production Sharing Agreement (EPSA) signed in May, Occidental Mukhaizna and its partners have pledged to invest an estimated RO 11.5 billion (around USD 30 billion) through 2050. These investments are aimed at enhancing production efficiency and incorporating advanced extraction technologies to optimize resource recovery within the block. To date, Oxy Oman has produced over 640 million barrels from Block 53 through the operation of 3,500 wells.
During the conference call, Oxy’s President and CEO, Vicki Hollub, remarked, “That was an incredible agreement that we made with Oman because it benefits both Oxy and Oman, and it allows us the flexibility and possibility to invest there because now the economics will be comparable.”
Kenneth Dillion, Senior Vice President and President of International Oil and Gas Operations, emphasized the presence of multiple stacked pays—distinct hydrocarbon-bearing layers—within Block 53. “With all the work we’ve done there, what we see is multiple stacked pays across a very large block. In the North, we’ve been producing the layup wells, which don’t require steam. So we see the extension as a win-win for both Oxy and the government, ensuring sustainability.”
Net hydrocarbon production from Oxy Oman’s portfolio averaged 76,000 barrels of oil equivalent per day (boepd) in the second quarter of 2025, an increase from 64,000 boepd in the same period of 2024.
Special Analysis by Omanet | Navigate Oman’s Market
The recent hydrocarbon discovery by Occidental in Oman represents a significant opportunity for both domestic and international investors, creating potential for increased production and economic growth. With an investment commitment of RO 11.5 billion (approximately USD 30 billion) through 2050, businesses should watch for enhanced production efficiencies and the adoption of advanced technologies that could reshape the sector. Smart investors should consider positioning themselves strategically in related industries to leverage this imminent growth trajectory in Oman’s oil and gas landscape.
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