Oman extends oil deal with Occidental until 2050, allowing $29.8 billion investment

BY THE ARAB TODAY May 19, 2025

Oman extends oil deal with Occidental until 2050, allowing $29.8 billion investment
Oman extends oil deal with Occidental until 2050, allowing $29.8 billion investment

Oman extends oil deal with Occidental until 2050, allowing $29.8 billion investment

Oman’s Ministry of Energy and Minerals signed an agreement on Sunday to extend its deal with Occidental Mukhaizna and partners for exploring and producing oil in Block 53. The deal will now last until 2050 and is expected to bring $29.8 billion (OMR 11.5 billion) in investments.

Deal Extended

According to the Oman News Agency (ONA), the deal has been extended to include spending on both equipment and daily operations. The goal is to improve how oil and gas are produced and to use the latest technology to get the most out of the region’s natural resources.

These investments will help keep the supply chain and business contracts running smoothly. This will boost the economy and create more jobs in the oil and gas industries, as well as in related businesses.

Oman’s Minister of Energy and Minerals, Salim bin Nasser bin Said Al Aufi, said the extension of this deal is an important step for the country’s economy. He said the money being invested will help improve production and increase the value of the energy sector in Oman.

He also said the ministry is committed to working with its partners to make the most of the resources in the area known as “the Block.”

Recent Energy Deals

In May, OQ Exploration and Production (OQEP) and TotalEnergies started building the Marsa LNG Plant at the port of Sohar in northern Oman. This happened one year after they made the final decision to invest.

The plant will produce one million tons of liquefied natural gas (LNG) per year. It is being built by Marsa LNG, a company owned 80% by TotalEnergies and 20% by OQEP. The plant is expected to start producing LNG in early 2028, mainly for ships in the Gulf region.

In April, several major companies from Oman, the Netherlands, and Germany, including Tata Steel Nederland, signed a big agreement to create the world’s first liquid hydrogen import corridor. This project will connect the port of Duqm in Oman with the port of Amsterdam in the Netherlands and with important ports and logistics centers in Germany, such as the port of Duisburg.

About 11 companies are part of this agreement, including Hydrom, OQ, Hynetwork, and HHLA (Hamburger Hafen und Logistik AG).

Published: 19th May 2025

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