As part of its campaign to increase oil output, Oman has signed a five-year agreement with PGS Geophysical, which will assess the presence of oil in offshore Block No 41, which is spread over 26,716 square metres.

The agreement, which was signed on behalf of the Omani government by Dr. Mohammed bin Hamad Al Rumhi, Minister of Oil and Gas, stipulates that "PGS Geophysical will carry out a seismic survey and interpret seismic data available to assess the presence of oil in the area."

The agreement, which was signed on behalf of PGS Geophysical by Aadil Karas, Middle East manager, also grants the company the right to market and promote the block in the international market and sell the new data under the supervision of the Omani government, which is not to bear any cost.

The aim is to use new promotional methods to market open blocks in the sultanate.

Meanwhile, Rashid bin Khalid Al Barwani, marketing adviser at the Ministry of Oil and Gas, said Opec's recent agreement to leave oil output unchanged is going to benefit both producers and consumers.

He expected oil prices to remain around $24 per barrel during the last quarter.

Barwani said Opec had agreed to meet in the first week of November to asses the market situation. He estimated the market surplus at 1.5 million barrels per day.

A committee has been formed to consider bids for a proposed oil market unit in the ministry for which five international companies are already in the race.

Oman, which is not an Opec member, pumps around 900,000 barrels per day.