The Sultanate of the oil and gas industry of Oman as of now is undergoing an awaited and much-needed revival. In the late 1990s, the E&P (Exploration and Production) had seen the country producing nearly 950,000 barrels of oil, which was equivalent per day (boepd) on average. However, by 2007, the production dropped to 714,000boepd, the lowest of all times, prodding the Omani policy makers towards focusing more on the fresh technological and capital investment to enhance production.
As the proven reserves of Oman, supposed to be in the range of 5.5 bln barrels of oil equivalent are quite lesser when compared to the neighboring powerhouses of UAE, Saudi Arabia and also Iraq, the country has been a little protectionist always.
All the oil majors who get along well in this non-OPEC Middle Eastern production zone when compared to all the other hubs situated in the region were behind the very first wave of the E&P activity.
Frontier Resources, which is listed on the Alternative Investment Market (AIM) of the London Stock Exchange since July 2013, has a very interesting corporate narrative on why and also how it came to back the Omani E&P. The company might look like something new, just six years old, but the roots and origins run back to a US technical consultancy that was founded in the year 1989 by the present CEO Jack Keyes. He is also the man who helped in finding the Circle Oil.
As per Barbara Spurrier, the Finance Director of the Frontier Resources, the company made sure to reassess all its priorities in the most needed way before its decision of raising equality in London. She said, “In October 2012, we sold all our US assets, in favor of projects in Oman alongside Namibia and Zambia. It might seem a bit dramatic, but aside from our desire to concentrate elsewhere, the decision made commercial sense.”
She also added, “Our US holdings comprised of small shares, often in the shape of limited partnerships, in nearly 80 wells, mostly onshore in Texas. Getting a CPR on each of them would have been very expensive and time consuming ahead of our Initial Public Offering .So we decided to divest and concentrate on exploration assets such as Oman’s Block 38.