The Omani Ministry of Energy and Minerals stressed that it had not recently participated in any technical discussions or commercial negotiations related to the joint offshore oil field with Iran.

Oman denied recent reports by Iranian media about a bilateral agreement over the Hengam gas field, and Tehran’s acquisition of an 80 percent share. The ministry stated that previous discussions on the development of the field have failed to reach an agreement.

In a statement on Tuesday, the ministry of Energy noted that it had not recently participated in any technical discussions or commercial negotiations related to this joint field and denied any agreement to distribute shares between the parties.

It confirmed, however, that maximizing the benefit of the gas field would only be achieved through joint development.

“The joint offshore oil field (West Bukha – Hengam) is located between the maritime borders of the Sultanate of Oman and the Islamic Republic of Iran, off the Musandam Governorate from the Omani side. The part of the Iranian side is called Hengam and on the Omani side it is called West Bukha in concession area block 8. Production in the West Bukha field of the Sultanate of Oman has started since 1985,” the ministry clarified.

The joint field contains huge reserves of oil and gas, estimated at 700 million barrels of oil, in addition to two trillion cubic feet of gas.

Iranian media recently said that the Omani and Iranian sides reached an agreement on the division of shares, according to which Iran would get an estimated 80 percent of the field’s production, while the Sultanate of Oman would receive 20 percent.

Meanwhile, a senior official in the Omani Ministry of Energy and Minerals stated that the country has achieved a balanced increase of 2.1 percent in the production of crude oil and oil condensate during 2021, maintaining the same levels of oil production. This comes in line with an agreement to reduce production with OPEC and other countries outside the organization.

Dr. Saleh bin Ali Al-Anbouri, Director General of the ministry’s General Directorate of Exploration and Production, said: “The reserves of crude oil and oil condensates have increased by four percent compared to 2020.”

In a report published by the Oman News Agency, Al-Anbouri noted that the ministry has supervised the implementation of several projects with oil and gas operating companies, which aim to develop fields and ensure continuous improvement through latest technologies.

The average production of crude oil and oil condensates during the year 2021 was about 971,000 barrels per day, compared to 951,000 barrels per day in 2020, with an increase of 2.1 percent over the previous year.