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“These achievements marked significant milestones in their respective fields and are poised to make substantial contributions to the overall development and growth of Oman’s energy and minerals sectors,” the Central Bank stated in its 2023 Annual Report
A number of key infrastructure projects undertaken in the hydrocarbon and mining sectors of the Sultanate of Oman during 2023 will suitably prime the country in the effective utilization of national resources in the coming years, according to the Central Bank of Oman (CBO).
Oman’s apex bank cited in particular significant project initiatives launched by, among others, the wholly government-owned integrated energy group OQ, independent energy firm Occidental Oman, and Mineral Development Oman (MDO), as notable examples of project development undertaken last year.
“These achievements marked significant milestones in their respective fields and are poised to make substantial contributions to the overall development and growth of Oman’s energy and minerals sectors,” the Central Bank stated in its 2023 Annual Report issued here on Sunday.
Oxy Oman, a key contributor to Oman’s annual hydrocarbon production, advanced the development of its ‘Thuleilat Field in south-central Oman. It entailed the expansion of infrastructure and construction of production handling facilities and an interconnecting pipeline. Furthermore, Oxy Oman successfully assessed the potential of the western area of Aruma within the Mukhaizna field in Block 53. That exercise led to an initial production of 400 bpd of oil through horizontal drilling.
Notable projects executed by OQ – part of Oman Investment Authority (OIA) – during 2023 include an ammonia project with an investment of $463 million. “The project successfully achieved financial completion in October 2023 after undergoing the Lenders’ Reliability Test (LRT) in June of the same year. This is a significant milestone that culminates the projects in OQ’s Salalah Cluster,” the apex bank said.
At Ras Markaz in Duqm, OQ subsidiary Oman Tank Terminal Company (OTTCO) delivered a key phase of a major storage terminal for crude oil and petroleum products.
“The terminal is strategically positioned to serve as a hub for regional oil trading and distribution, enhancing Oman’s capabilities in the energy sector. The project moved from the construction phase to operational status in 2023, successfully passing the Lenders’ Reliability Test (LRT) in August 2023. Since its inception, OTTCO has completed 19 shipments and transferred 26.6 million barrels through pipelines to (Duqm Refinery) OQ8,” said the CBO report.
MDO – the mining sector investment arm of the Omani government represented by OIA – also launched a number of significant projects in 2023. Notable is the Mazoon Mining project targeting copper ore deposits in the Wilayat of Yanqul. Covering a total of five mines with deposits estimated at 22.9 million tonnes, Mazoon Mining commenced project development in February 2024. The development phase will span about 30 months.
Also significant is MDO’s Block 4 Redevelopment Project focusing on the Al Aseel and Al Bayda mines in the Wilayats of Suhar and Liwa. “The project is one of the most prominent projects of the transformation strategy of Oman Mining Company. The mines in question contain an estimated 2.78 million tonnes of copper ore reserves,” the Central Bank in its report.
Equally promising is the Al-Ghuzayn project led by Mawarid Mining centring on the development of a copper mine in the Wilayat of Al Khabourah. Incorporating an underground mining component, the project targets around 6 million tonnes of reserves with a copper concentration of 2.04 per cent. Production capacity is estimated at 1 million tonnes of copper concentrate per annum. |
