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India, Oman to explore options in oil and gas

MUSCAT: India and Oman are focusing on joint forays in the oil and gas sector as part of their effort to deepen ties.

External Affairs Minister Pranab Mukherjee, who is on a two-day visit to Muscat, said during a public address that Indian companies have secured oil and gas as well as mining concessions in Oman. A consortium involving an Omani company has also won exploration bids for oil blocs in India, he said.

Sharing a common border with the United Arab Emirates (UAE) and not being far from Iran, Oman is also well positioned to receive oil and gas from its neighbouring countries through a network of pipelines. Work is already progressing on the Dolphin Gas Project, which will bring natural gas from Qatar to the UAE and Oman.

Oman and Iran are also negotiating the transfer of gas from Iran’s Kish and Hengam gas fields. Official sources told The Hindu that India could be a potential buyer of surplus gas that could be available in Oman in the future. India is paying close attention to Oman because of its proximity to the Arabian Sea. The transit of hydrocarbons through Oman can also avoid the vulnerable Strait of Hormuz, a narrow channel through which the bulk of oil supplies from the Persian Gulf passes.

Two Memoranda of Understanding (MoU) are slated to be signed during Mr. Mukherjee’s visit. The Institute of Chartered Accountants of India will sign an MoU with the College of Banking and Financial Studies for establishing a chartered accountants institute in Oman. The Chennai-based Institute of Plastics Engineering Technology will also sign an MoU with Oman and Emirates Investment Holding Company. Mr. Mukherjee said that a decision has been taken to establish a joint investment fund with a seed capital of $100 million.

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