EDO aims to attract partners for the gas fields in Block 6, which also includes Oman’s most significant oil assets. The sale would provide capital for the sultanate and help distribute the substantial costs required to develop and operate these fields, estimated by Wood Mackenzie Ltd. at $8.2 billion. Negotiations are ongoing, though plans may still change, sources noted.
This move aligns with Oman’s broader strategy to strengthen public finances through asset sales, including a series of initial public offerings (IPOs) of state-owned entities. These efforts also support economic diversification projects to reduce reliance on oil revenue. Block 6, separated from Petroleum Development Oman in 2020 to form EDO, is a key asset, with EDO holding 60% of the block’s oil and 100% of its gas concession. Earlier plans to issue bonds through EDO were postponed due to unfavorable global financial market conditions.
Dalia Salem, a senior research analyst at Wood Mackenzie, stated: “Block 6 is Oman’s largest and most-valuable oil and gas asset.” The block contains around 10.7 trillion cubic feet of proved and probable non-associated gas reserves and produces over 2 billion cubic feet daily, she added.
While oil currently generates significantly more revenue than gas for Oman, investments are increasingly shifting toward gas projects to meet rising global demand. In related developments, TotalEnergies SE and Oman’s OQ SAOC are constructing a facility to supply liquefied natural gas (LNG) to ships. Additionally, the government has engaged with international energy companies, including bp and Shell Plc, to invest in a new LNG train at Qalhat, which would boost Oman’s export capacity by 25%.
Oman’s efforts to sell a stake in Block 6 reflect its commitment to balancing fiscal stability with strategic investments in energy infrastructure, positioning the country to capitalize on growing global demand for natural gas.
