The Sultanate of Oman is preparing to enhance opportunities for cooperation and economic partnership in the energy and mineral sectors with China, especially in the field of oil production. An Omani delegation visiting Beijing is currently discussing opportunities to increase the participation of Chinese companies in production, exploration and refining operations, as well as investing in oil and gas in some of the concession areas in the country. Gulf oil state.
In this context, the Undersecretary of the Omani Ministry of Energy and Minerals, Muhsin bin Hamad Al-Hadrami, met today, Wednesday, May 31 (2023), during the visit, officials of the Chinese Reform and Development Committee, which is responsible for foreign government investments, to discuss opportunities to enhance cooperation and economic partnership in the energy and mineral sectors. According to what was published by the Oman News Agency.
Al-Hadhrami called on Chinese companies with great experience and advanced technologies in the field of energy and minerals to invest in his country, a request supported by the committee, as the contributions of Chinese companies to oil production in the Sultanate of Oman are increasing, according to what was monitored by the specialized energy platform.
Oil exploration and production in the Sultanate of Oman
The Undersecretary of the Omani Ministry of Energy and Minerals, Mohsen bin Hamad Al-Hadrami, discussed, during meetings with Chinese private sector companies, including CNBC and CNOC, the possibility of participating in oil exploration and production operations in the Sultanate of Oman, in addition to To invest in the refinery sector.
The Director General of Investment at the Ministry of Energy and Minerals, Dr. Salah bin Hafeez al-Dahab, said that the aim of the visit is to search for the possibility of concluding agreements to develop open oil concession areas in his country, bring technology related to enhanced recovery, and develop heavy oil.
He explained that these agreements will come through the ministry’s discussions with Chinese companies, especially in light of the interest in the shift towards investment in the field of renewable energy and hydrogen projects, stressing that the China National Oil Company has shown interest in the areas offered for hydrogen during the upcoming rounds.
And a Chinese company expressed its intention to reach an understanding regarding a strategic partnership with the Sultanate of Oman, which includes all branches of the oil and gas sectors, from the upper part to the lower part, through the establishment of integrated projects in partnership with Omani institutions, according to Hafeez Al-Dahab’s statements, which were reviewed by the specialized energy platform.
renewable energy and hydrogen
The Director General of Investment at the Omani Ministry of Energy and Minerals revealed that a Chinese energy financing company has expressed interest in investing in green minerals in the Sultanate of Oman, in addition to investment opportunities in hydrogen.
The Gulf oil state aims to localize industries related to renewable energy and green hydrogen, such as manufacturing wind turbines and energy storage batteries with a number of Chinese companies, and exploiting local mineral resources such as copper, silica and lithium.
It is noteworthy that China obtains more than 80% of the oil production in the Sultanate of Oman, so the Gulf state seeks to enhance cooperation and investment opportunities with it in this field, with the presence of companies with high technological capabilities, as well as the existence of opportunities to finance joint projects.
The meetings come as part of a working visit to Beijing by a large delegation that includes representatives of the Ministry, the Oman Investment Authority and the Public Authority for Economic Zones and Free Zones, with the aim of searching for opportunities with government officials and representatives of major companies, to enhance partnerships with China.
The Sultanate of Oman pays special attention to green mineral projects, as it signed on May 22 (2023) memorandums of understanding to implement a green iron production complex on its territory, as part of its plans to reduce emissions and diversify sources of income.
It is expected that the new complex for the production of green iron will be built on an area of about 6.78 square kilometers, and will include 3 factories represented in ore concentration, green molding, and reduced iron, according to information obtained by the specialized energy platform.
The complex for the production of reduced iron and steel products works to reduce the level of carbon emissions, as the use of gas in production reduces emissions by 60%, compared to the production of pig iron by the method of merging blast furnaces and oxygen, and it will also depend on renewable energy and hydrogen fuel at a later stage.
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