Agreements signed and exploration for further gas resources continues as the Ministry for Oil and Gas (MOG), Oman Oil Company (OOC), Shell and Petroleum Development Oman (PDO) sign an interim upstream arrangement. This has been long in the waiting, since the MoU that was pre-emptively signed in May 2018, which was related to the development of an integrated gas project. The excavation will further explore and develop the gas resources of the Greater Barik area. In light of the discovered gas resources Oman poses as a prime country for investment and has already had potential investors. French energy major Total has acknowledged Oman`s prospects and plans to invest to develop their gas resources.
"Today`s agreement is a significant step forward. We hope that the development of gas resources destined for the integrated projects will play an important role in generating in-country value and diversifying Oman`s economy." - Chris Breeze, Shell`s country chairman in Oman.
The parties involved in the development of gas resources envisage a long and prosperous future together, one of investments, developments and success. The Oman Oil and Gas Ministry, Shell and other parties involved, such as OOC and Total, will be working closely, diligently and positively to consolidate the energy projects. These aforementioned parties are expected to sign definitive agreements within the second-half of 2019. Oman has been closely linked in a variety of agreements and partnerships, supporting the go-ahead for production/exploration of gas resources. Energy company Eni has signed with MOG and BP a Head of Agreement (HoA), setting up principles for the acquisition of the Exploration and Production rights of Block 77. Eni has been making movements throughout the Blocks, setting up multiple partnerships and reinforcing its presence in The Sultanate of Oman, while strengthening the collaboration with OOCEP.
"We are confident that the project will help diversify the gas sector in Oman and support the economic development of the port of Sohar and its region"- Stephane Michel, senior vice-president for exploration-production of Total for the Middle East and North Africa (MENA).
Oman - Your Next Potential Investment?
It is evident that Oman is potentially a prosperous country for investments. The Middle East relies heavily on gas and oil production and positively benefits from these discoveries. Although big proportions of the economy rely on gas and oil, the Middle East is now utilising and diversifying the economy, using investments to generate other in-country values. Oman is one of many success stories within the region.
Bordering with the UAE, Saudi Arabia and Yemen, it is a prime location for investments.
In case you decide to invest in the region, Cedar Rose offers KYB or Know your Business checks that offer an instant automated verification of businesses throughout MENA. Via API, you can receive, in real-time, accurate information that can help you instigate business and mitigate risks. However, in many situations it may be vital to investigate further, and we therefore offer investigative due diligence checks, which are a more advanced form of business intelligence. Let our information help steer you in the right direction.
For information on the very much talked about news in the Middle East surrounding one of the largest expo`s in the world, find out more with our latest 2020 Dubai Expo: Everything we Know article.
Written By: Jack Evangelides, Marketing Assistant
*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. **