May 12, 2025 (MarketLine via COMTEX) --
EDO is looking for partners to invest in a minority share of the natural gas reserves in Block 6.
Oman is reportedly exploring the sale of a stake in its natural gas assets, with an estimated value of around $8bn (OR3.08bn), reported Bloomberg, citing people familiar with the plan.
The move is part of the sultanate's strategy to strengthen its financial position and fund future investments.
State-owned company Energy Development Oman (EDO) is looking for partners to acquire a minority stake in the natural gas fields located within Block 6, which is said to hold the country's key oil assets.
Block 6, was separated from OmanaEUR(TM)s largest oil producer, Petroleum Development Oman, in 2020 and was integrated into the newly established EDO.
It is estimated to contain 10.7 trillion cubic feet (tcf) of proved and probable non-associated gas reserves and has a production capacity of more than two billion cubic feet per day (bcf/d).
EDO holds a 60% share in the block's oil and full ownership of the gas concession.
The potential sale would not only provide Oman with much-needed funds but also help distribute the substantial development and operational costs associated with these fields.
If successful, this deal would join a series of asset divestitures in Oman, all aimed at reinforcing the public finances of the nation, which is considered among the most vulnerable in the Arab Gulf region.
EDO, which did not respond to an email requesting comment, is currently in discussions regarding the sale, and plans may still be subject to change, according to the sources.
The government had previously planned to issue bonds through EDO, but these plans have faced multiple delays due to unfavourable conditions in global financial markets.
However, OmanaEUR(TM)s Ministry of Energy and Minerals has refuted claims that the sultanate is contemplating the sale, stating that the government has no immediate plans for such divestment, according to a report by Muscat Daily.
Ministry of Energy and Minerals director-general of exploration and production of oil and gas Saleh al Anboori said: aEURoeThe ministryaEUR(TM)s priority is to enhance operational efficiency and attract global technical expertise and investment through strategic collaborations focused on knowledge transfer and maximising value creation within Oman aEUR" without compromising ownership or sovereign rights over strategic national resources.aEUR
Although oil currently generates four-times more revenue for Oman than gas, the focus is gradually shifting as investments are increasingly directed towards gas projects. This shift is in response to the rising global demand for the fuel.
TotalEnergies and OmanaEUR(TM)s OQ SAOC are constructing a facility to supply liquefied natural gas (LNG) to ships.
Furthermore, the government has approached international energy giants such as bp and Shell to invest in a new LNG train at Qalhat, which is expected to boost the country's export capacity by 25%.
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