Back toour markets

Oman's Energy Industry

H.E. Salim bin Nasser AL AUFI

Undersecretary

Ministry of Oil and Gas

The long-term objective for oil is to maintain a stable plateau, award all potential open blocks and optimise the development cost per barrel.
Read The Full Interview

Oman's Energy Industry In Figures

Oil reserves5.4 billion barrels

Oil production971,000 bopd

Gas reserves700 bcm

Gas production41.8 bcm

Oman

Oman’s oil and gas industry in transition

Oman’s oil and gas industry has been the main driver of the country’s economic development since commercial production began in 1967. The nation is now the largest producer of hydrocarbons in the Middle East outside of OPEC members. Traditionally around 70% of the Omani state’s budget is fuelled by revenues from taxation and operations of its oil and gas production, and the sector accounts for around 30% of Oman’s GDP. However, the country is stressing diversification of its economic foundations using the oil and gas sector as a base under its Vision 2040 programme. The initiative looks to see non-oil activities provide 90% of the nation’s GDP.

Government approvals and policy in its energy industry are dictated by the Ministry of Energy and Minerals, with NOC Petroleum Development Oman being the largest operator with the largest oil reserves in the country. The state-run entity is followed in size and scope by American E&P company Occidental Petroleum, which has the largest presence of any foreign company in the country. The government has also created other state-run players that have lesser stakes in upstream, midstream and downstream operations.

Most of Oman’s oil and gas resources are traditional, with limited unconventional and zero shale plays. EOR techniques have allowed the country to continue producing from its maturing assets. The country has continued successfully up its reserves and launch production expansion projects on its upstream assets.

While local oil production meets the demand for domestic energy consumption, the country is active in transitioning away from oil and gas towards reliance on solar and wind facilities in its power generation sector. The government has set a goal of reaching 30% of the nation’s electricity demand being met by renewables by 2030, with two-thirds of this expected to be from solar followed by wind and waste-to-energy sources. The government has signed deals with large international entities such as BP to explore renewables options by 2030.

“The possibilities for Oman are enormous. There are many oil and gas resources to be explored and developed, and solar and wind offer a lot of potential as well,” Chris Breeze, country chairman for Shell Development Oman, told The Energy Year.

“There are also significant opportunities to use digital technologies to interact with customers to enhance the energy efficiency of the electricity network. There are such large quantities of in-country resources available, and we have only just begun to unlock the potential of energy efficiency.”

Oman's Energy Industry News and Interviews

McDermott awards camp services for Uganda project
Articles
Uganda - September 19, 2022

Since Uganda’s first commercial discovery was made in 2006, the country has been busy designing the legislative, institutional…

READ MORE
Shell and TotalEnergies join Oman’s Block 11
NEWS
Oman - September 19, 2022

TotalEnergies and Shell have signed an exploration and production sharing agreement with the government of Oman to explore…

READ MORE
PDO awards $550-million drilling contract in Oman
NEWS
Oman - January 27, 2022

KCA Deutag Energy has signed a USD 550-million contract with Petroleum Development Oman for drilling services, the…

READ MORE
Oman partners with bp for energy transition
NEWS
Oman - January 17, 2022

Oman has signed a strategic framework agreement with bp for development of renewables and green hydrogen projects by 2030, the…

READ MORE
TotalEnergies signs low-carbon gas deals in Oman
NEWS
Oman - December 22, 2021

TotalEnergies has signed a series of agreements to develop low-carbon natural gas in Oman, including one for the formation of a…

READ MORE
Tarek EL AZHARY General Manager STRATOCHEM SERVICES
Interview
Egypt - November 17, 2021

Tarek El Azhary, general manager of StratoChem Services, talks to The Energy Year about areas with the most upstream potential…

READ MORE
SAKNAFTA PETROLEUM SERVICES
Interview
Egypt - July 07, 2021

Amr Farrag, chairman of Saknafta Petroleum Services, talks to The Energy Year about managing the impact of Covid-19, the best approach to developing Egypt’s…

READ MORE
Dietmar SIERSDORFER Middle East and UAE Managing Director SIEMENS ENERGY
Interview
Abu Dhabi - April 09, 2021

Dietmar Siersdorfer, Siemens Energy’s Middle East and UAE managing director, talks to The Energy Year about the company’s role in the region’s energy transition,…

READ MORE

 

WHOSE PLATFORM IS THIS?
ASK US

  • Do you have a question for The Energy Year about oil and gas?
  • If we know, we’ll tell you.
  • If not, we’ll ask the experts in the field.