Oman’s Energy Ministry To Award Exploration Block Within Weeks

22 May 2026 Issue: 69 / 21 By: James Marriott

Oman’s Ministry of Energy and Minerals expects to award an exploration contract by the end of June for the first of three blocks offered in a bid round launched last year. It is confident that new contract terms will attract larger international investors.

Oman’s upstream sector has been unaffected by the conflict that has forced other producers in the Gulf region to shut in as much as 13mn b/d of crude oil production. Because Oman is situated outside of the Strait of Hormuz, crude oil exports have not been affected while production rose to a two-year high of 1.053mn b/d in the first month of the conflict.

Production capacity is well below that of other regional producers such as Saudi Arabia, Iraq and the UAE, while more challenging geology means higher production costs. However, the conflict has underscored Oman’s geopolitical stability, which could help to attract greater foreign investor interest. Muscat regularly launches licensing rounds and is preparing to award acreage offered in June last year (MEES, 7 February 2025). (CONTINUED - 716 WORDS)