According to a report by the official ONA news agency, a “package of deals” was signed between the Omani government and its partners in PDO and included the extension of the current concession and the management of a new concession (Block 6) by PDO. The new concession will begin in January 2005 and expire in December 2044.

“PDO plans to invest more than US$10 billion over the next five years in the concession area, and there is a good chance of increasing oil and gas production," Omani oil and gas minister Mohammad bin Hamad al-Romhi said.

“Another important message of a 40-year agreement is that Oman will be producing oil for at least another 40 years. Precisely, the Sultanate will be in this business for at least another 40 years.”

Royal Dutch/Shell Group executive director exploration & production Malcolm Brinded said these agreements provided the certainty that the Government, Shell and the other private shareholders needed to take PDO forward.

“There are huge resources in Block 6 but the reservoir structures in Oman are amongst the most geologically complex in the world," Brinded said.

"Their effective exploitation has always required a wide range of production techniques. As technical adviser, Shell has been able to provide leading-edge technology developed around the world and I am glad that this partnership can now continue for another four decades, contributing to Shell’s global existing oil production.”

The Omani government holds a 60% stake in PDO. Shell holds a 34% stake, Total has a 4% stake and Oman’s Partex Corp holds 2%.