Oman gives 18 million-dollar oil contract to Danish firm

Published March 19th, 2001 - 02:00 GMT

Oman awarded an $18 million contract Sunday to the Danish firm Maersk to look for crude oil and natural gas in the west of the sultanate, the official ONA news agency said. 

 

Maersk, which is already located in southern Oman, will conduct seismic research and drilling to search a zone of 3,878 square kilometers (1,550 square miles), the agency said. 

 

The four-year renewable contract was signed by a company official and Omani Oil Minister Mohamed al-Romhi, who called the agreement a sign of major multinationals' desire to invest in Oman's energy sector. 

 

Discussing OPEC's decision Saturday to reduce production by one million barrels a day starting April 1, Romhi said his country would "coordinate with the cartel for the reductions." 

 

Oman, which is not a member of OPEC but works closely with it, produces close to 900,000 barrels a day. Romhi said he did not expect the price of crude oil "to go under $22 a barrel in the coming months."—AFP. 

©--Agence France Presse 2001. 

 

© 2001 Mena Report (www.menareport.com)

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