The Khazzan gas field will commence operations in September, Salim bin Nasser al Oufi, Under-Secretary of the Ministry of Oil and Gas, has said. After opening the Al Maha Communication Centre, he said the flare in Khazzan gas field is an indication that gas has been supplied to the plant. “The first train that will be operated can carry 500 million cubic feet of gas per day. The second train, with the same capacity, will be operated at the beginning of 2018,” he added. “The local market will receive a share of the gas produced from Khazzan gas field. Some quantities will be exported to be used as feedstock for Oman LNG and Qalhat LNG,” said Al Oufi. The gas will be used by power plants and their expansions or additional projects.
A part of the production will be handled by Special Economic Zone at Duqm through a gas pipeline that will be completed by end of 2019.
Meanwhile, the committee tasked with following up on fuel prices has submitted its recommendations to the Council of Ministers on segments of the society that are eligible for subsidy following a surge in fuel prices.
“The committee also provided answers to all the queries the Council had raised on the mechanism of compensation,” said Al Oufi.
The Council will take a suitable decision to support the eligible segments after considering the proposed mechanisms recommended by the committee.
In February, the Council of Ministers had directed the committee to finalise the executive mechanisms and procedures required for supporting economically weaker sections.
The directives stem from the government’s keenness to accord special attention to low-income sections who are affected by oil price fluctuations.
“The Sultanate is committed to oil production cut up to the first quarter of 2018. Opec meet in November will discuss production cut and how long it would continue,” he said.
To a question on oil price, he said he expected the price of oil to be above $50-55 a barrel for more than a year.
As for Al Jafnin Terminal, owned by Orpic, he said the Suhar/Muscat Fuel Pipeline (Al Jafnin Terminal) has been completed and the first consignment through the pipeline has been delivered as a trial stage.
“We need to fill the pipeline completely and then take it to the tanks in the terminal, which will start actual operation by end of August.”
He said the Ras Markaz crude oil terminals are an “important economic addition” to the Sultanate as abundant quantity of oil from various parts of the world and the region will make the area a hub and generate more job opportunities.
He said Royal approval has been obtained for four wells designated for exploration.
The Ministry of Legal Affairs and the Ministry of Finance are finalising agreements that will be signed in the coming months.
He said that this year, three or four blocks will be floated for concession by the oil and gas exploration companies that showed great interest in the offer.
Al Maha Communication Centre has been launched under the theme ‘Together to Serve You’. It includes an integrated system of services and programmes for customer care.
It answers queries and receives feedback about the quality of services and products rendered by the company. (With ONA inputs)



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