The oil and gas industry has been a crucial contributor to Oman’s economy for many years. According to the Oman Ministry of Oil and Gas, the country has proven oil reserves of 4.9 billion barrels and proven natural gas reserves of 24.7 trillion cubic feet as of 2021. These reserves have been the driving force behind Oman’s economic growth, with the oil and gas industry contributing nearly 50% of the country’s GDP.
Oman’s oil and gas industry has undergone significant development in recent years, with the government’s efforts to diversify the economy and attract foreign investment. The industry is dominated by state-owned petroleum companies such as Petroleum Development Oman (PDO), which is responsible for the majority of oil production, and Oman LNG, which produces liquefied natural gas for export.
PDO operates in the country’s largest oil field, the Greater Ghawar oil field, which produces approximately 70% of Oman’s oil output. The company has also implemented several measures to improve oil recovery rates and reduce environmental impact, such as utilizing enhanced oil recovery techniques and implementing carbon capture and storage projects.
Oman LNG, on the other hand, operates three liquefied natural gas trains in Sur, with a combined capacity of 10.4 million tons per annum. The company has been a significant contributor to Oman’s natural gas exports, with exports going to several countries in Asia, Europe, and South America.
Apart from these state-owned companies, Oman’s oil and gas industry has also seen the emergence of private companies and foreign investors. The government has encouraged such investments by offering attractive incentives and providing a stable regulatory environment.
One such company is Occidental Petroleum, which operates the Mukhaizna oil field in Oman, producing approximately 127,000 barrels of oil per day. The company has implemented advanced drilling techniques and technologies to increase oil recovery rates and improve production efficiency.
The government has also invested in developing the country’s oil and gas infrastructure, with several major projects underway. These include the Duqm Refinery and Petrochemical Complex, a joint venture between Oman Oil Company and Kuwait Petroleum International, which is expected to have a refining capacity of 230,000 barrels per day and produce a range of petrochemical products.
Overall, Oman’s oil and gas industry is an essential component of the country’s economy and will continue to be so in the foreseeable future. The government’s efforts to diversify the economy and attract foreign investment have been successful, with several private companies and foreign investors entering the market. The industry’s continued growth will depend on maintaining a stable regulatory environment and implementing sustainable practices to ensure long-term viability.