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Oman's Energy Industry

H.E. Mohsin AL HADHRAMI

Undersecretary

MINISTRY OF ENERGY AND MINERALS

We are aiming to become a world hub for hydrogen, planning to produce 1 million tonnes per year by 2030.
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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% 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. 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 take up 90% of the nation’s GDP.

Government approvals and policy 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. While local oil production meets 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 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

OPEC+ rolls out production cuts into 2024
NEWS
Multinational - December 01, 2023

OPEC+ members have agreed to oil production cuts totaling 2.2 million bopd for early 2024, the oil and gas organisation…

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PDO to begin CO2 enhanced oil recovery pilot
NEWS
Oman - November 29, 2023

In what will be a first for Oman, Petroleum Development Oman (PDO) announced on Wednesday that it will begin an extended pilot…

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Nabors delivers advanced energy technologies _Miguel-SANCHEZ
Interview
UAE - November 14, 2023

Miguel Sanchez, vice-president of international operations at Nabors Industries, talks to The Energy Year about the shifting…

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Oman launches largest solar desalination project
NEWS
Oman - November 06, 2023

Oman’s largest solar PV desalination plant was inaugurated on Monday, a milestone for what project developer Veolia has called…

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TotalEnergies extends partnership with Oman LNG
NEWS
Oman - November 02, 2023

TotalEnergies has signed an amendment to extend its partnership with Oman LNG for 10 years, the French energy giant announced on…

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Oman launches first locally manufactured rig
NEWS
Oman - November 01, 2023

Petroleum Development Oman (PDO) has launched Oman’s first locally manufactured well drilling rig, the Omani E&P company…

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A big opportunity in manufacturing TEY_post_Bassam-BAMAGOUS
Interview
Saudi Arabia - October 26, 2023

Bassam Bamagous, chairman of the board of Advanced Precision Industrial Services (APS), talks to The Energy Year about the company’s transition from a machining shop…

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Oman partners on geologic hydrogen
NEWS
Oman - September 28, 2023

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…

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