Muscat – The Ministry indicated that it seeks to enhance the contribution of the energy and minerals sectors to the gross domestic product and national income of the Sultanate of Oman and to supplement the state’s general budget by using all possible means to enhance production at the lowest costs and the latest technology.
The annual report of the Ministry of Energy and Minerals for 2023 stated that during the past year, exploratory and producing companies in the oil and gas sectors drilled, tested and evaluated 63 exploratory and appraisal wells for oil and 15 exploratory and appraisal wells for gas, and this includes some wells that were previously drilled and underwent testing and evaluation this year.
The annual report indicated that the results of petrophysical analyzes and well productivity tests resulted in positive indicators in a number of them, and exploration was announced in some wells, through which the wells were linked to the production line and handed over to the post-exploration stage of development, which resulted in the addition of new oil and gas reserves.
The total reserves of crude oil and oil condensates expected by the end of 2023 were about 4,971 million barrels, an increase of one percent from what it was in 2022, while the total natural gas reserves expected for the Sultanate of Oman by the end of 2023 amounted to about 23 trillion cubic feet, down by 5 percent.
The report also noted that Oman hosted 18 companies operating in 36 oil and gas concession areas, with crude oil and condensate exports totaling about 310 million barrels, predominantly to China.
In the minerals sector, the ministry signed five agreements in 2023 focusing on potash and nickel ore exploration. Sales of mineral raw materials reached approximately 64.5 million tons, with notable increases in limestone, gypsum, and plastic material sales. Despite challenges, total mineral production in 2023 amounted to about 70.4 million tons.
Renewable energy initiatives saw progress with seven regions identified for development, including agreements for green hydrogen production in strategic locations such as Duqm, Dhofar, and Al-Jazar.
Electricity production in Oman reached 44.4 terawatt-hours in 2023, a 6.4 percent increase from the previous year, with nearly 2 terawatt-hours generated from renewable sources.
H.E. Engineer Salem bin Nasser al Aufi, Minister of Energy and Minerals, emphasized the ministry’s commitment to leveraging resources and technology to optimize sectoral development. Initiatives supporting local industry and small and medium enterprises (SMEs) were highlighted, including the establishment of a chemical manufacturing facility and the completion of Oman’s first electronically operated well drilling platform.
Key projects inaugurated in 2023 included the Al Ghaizin copper mining project in Al Khabourah, designed to enhance economic diversity with modern mining technologies. Additionally, a solar power station in Sur was commissioned to support renewable energy needs for the Sur desalination plant.
The ministry also prioritized social responsibility initiatives, collaborating with partners on national projects supported with a total of RO 2.5 million.