Saturday 19 / October / 2024
Muscat: The mining sector in the Sultanate of Oman has witnessed numerous improvements and amendments in the regulations and laws governing investment and work in mining areas over the past period, encouraging foreign and local investments in this vital sector.
Among these companies is ARA Petroleum, a subsidiary of Zubair Corporation, specialising in oil exploration and production both within and outside the Sultanate of Oman. The company focuses on exploring and producing hydrocarbons and aims to assess and develop oil and gas resources inside Oman and abroad.
Engineer Sultan bin Obaid Al Ghaithi, CEO of ARA Group of Companies, emphasised the need to accompany these mining areas with other industries such as iron, chromium, and related sectors to batteries and connectors. He confirmed that the company aims to venture into such industries to add value to the production of these geological resources boasting in Oman.
He added that the company has completed numerous studies in “C 51” area in the Wilayat of Mahout, targeting lithium and potash exploration. Currently, they have begun drilling water wells in search of lithium, looking forward to expanding the company’s operations in the mining sector in the upcoming phase.
Furthermore, he mentioned that the company has been involved in oil and gas production in Oman for nearly 10 years, currently producing around 18,000 barrels per day from various oil fields including "Block 44, Block 31, and Block 6".
The company has invested approximately USD 150 million in its operating activities and aims to increase its production to reach about 35,000 barrels per day of oil and gas, equating to 50,000 to 75,000 barrels per day by 2028.
He stated that the company has successfully adopted modern technology in both production and processing operations, with upcoming projects to be announced such as renewable energy usage and techniques to reduce carbon emissions. The total number of employees in the company is 240, with a nationalization rate of 95%.
Regarding renewable energy projects, he stated that the company has a solar energy project in the Qarat Al-Milh area in the Wilayat of Adam. This project involves water purification operations associated with oil and gas production and is currently nearing completion with an investment cost estimated at 3 million US dollars. It is expected to open soon.
He also pointed out that the company has succeeded in expanding its operations outside the Sultanate of Oman. It has engaged in oil and gas exploration and production in the Republic of Tanzania, achieving the first onshore gas discovery, producing 3 trillion cubic feet of gas. The production is expected to increase to be between 140 million cubic feet to 200 million cubic feet of gas by late 2025.
