Oman has discovered a new gas field, its largest find in the last six years, the country's Ministry of Oil and Gas announced. The field was struck on Tuesday at a depth of 4,500 metres by the well Khazzan-1, a wildcat drilled by Essar's rig 86 in central Oman, west of the giant Seeh Rawl field.

Petroleum Development Organisation (PDO) had announced in February the discovery of another gas field named 'Kauther', 50 kilometres from the Wilyat of Adam in the Dakhliya region. Oil was also struck last year in Zalzala, 80 kilometres from the Marmur oilfield.

Around 89.9 million barrels of oil and 1.4 trillion cubic feet of gas were added to the reserves by the new discoveries in 2000. Meanwhile, Oman's average crude production last year reached 955,000 barrels a day from 904,000 in 1999, according to the Ministry of Oil and Gas, which added that every effort was being made to further explore resources with the help of the world's leading drilling companies to boost the national economy.

Export of crude rose from 308.8 million barrels in 1999 to 326.8 million in 2000, fetching 8.72 billion riyals. China was the leading buyer with 114.4 million barrels, 35.1 per cent of the total crude export, followed by Japan (73.2 million barrels), and South Korea at third (55.7 million barrels).

Thailand, Taiwan, Singapore, the Philippines, Australia and the U.S. were the other importers. The $2 billion LNG project in Kalahat near Sur with a capacity of 6.6 million tonnes per annum (mtpa), was inaugurated last year.

The first shipment was sent to South Korea in April 2001 as part of the 25-year agreement for the export of 4.1 mtpa to Korea Gas Corp (Kogas). The government is building a new refinery by 2004 in Sohar, fast becoming an industrial complex, with a capacity of 75,000 barrels per day.

The Oman Oil Co will execute the project of dual gas lines to Sohar and Salalah. The length of the pipeline to Sohar is 300 km and will cost about $123 million, while the line to Salalah is 700 km and entails an outlay of $180 million.

Another major project in the offing is the fertiliser plant which has since been okayed by the Indian Government. The $862 million venture in Sur has been designed to produce 1,452,000 tonnes of urea and 360,000 tonnes of ammonia. Work on the project will start early next year.