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Oman Challenging Geology: Success Never Ends


The history of oil exploration in the Sultanate of Oman is dated back to 1937 when Iraq Petroleum Company (IPC) was granted a 75 years concession to carry out oil exploration and development in Oman through its subsidiary Petroleum Development (Oman and Dhofar) Ltd. In 1951 and based on 600km camel-borne survey, the IPC relinquished Dhofar, the Southern Provence of Oman, to be called Petroleum Development (Oman). Later in 1952, the Dhofar concession was acquired by an American oil company called Dhofar-Cities Service, therefore by 1950s there were 2 companies exploring for oil in Oman. Dhofar-Cities Service drilled Oman first exploration well in 1955 but was found to be dry. In 1957, Dhofar-Cities Service discovered Marmul oilfield but the development of the field was deemed to be commercially unviable due to heavy oil nature of the field. After drilling several dry wells, the American companies finally relinquished the Dhofar concession in 1967.