Muscat signs agreement for oil exploration in its waters

Oman yesterday signed agreement with an international oil exploration company for making necessary surveys in the sea area in the Sultanate with the aim of assessing the possibilities of having oil and gas there.

The Omani official news agency said that the Omani oil minister Muhammad Bin Hamad al-Ramhi and the director of the exploration services in the company cosigned the agreement which states to improve and promote geophysical information in a sea area that extends from Ras al-Had to Zafaar governorate.

According to the agreement, the company will carry out a two dimensional seismic survey of more than 10,000 KM and to study 5,000 Km of available data as well as interpret all data with the aim of assessing oil capacities in the area.

The agreement also includes providing the company the right to promote and market this area to oil companies and sell the new data at the supervision of the ministry of oil and gas.

The minister of oil and gas said that that the agreement comes in the framework of the Sultanate plans to increase oil production. This year the Sultanate signed several agreements for oil exploration in several areas.

Oman is an independent producer. It produces 900,000 barrels of oil.