Oman Energy

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Chapter | Energy from The Report: Oman 2019

The oil and gas sector is responsible for much of Oman’s economic growth and government revenue; thus, changes in the industry tend to reflect greatly on the sultanate’s overall development. Although recent years have seen a strategic shift towards economic diversification, activity in the hydrocarbons sector still attracts a large share of domestic and foreign investment, with this pattern...

Following the global oil price drop in 2014, Oman – like the other GCC states – is pushing ahead with its long-term national development plans that seek to diversify the economy.

Oman has moved to diversify its energy mix with the commissioning of new renewables projects, while the partial privatisation of downstream services looks set to generate opportunities for both domestic and international investment.

The expansion of a major gas project, the announcement of new finds and investment in downstream oil infrastructure are expected to support fresh growth in Oman’s energy sector.


Offering no major baskets of reservoirs or readily accessible resources waiting for discovery, Oman is generally a challenging geography for oil exploration. With the majority of the country’s onshore sweet oil having been identified and exploited, most of the remaining open concession blocks in the country tend to be better suited to...


Used as a primary fuel resource in power generation, water production, and upstream and downstream hydrocarbons activities, natural gas is central to Oman’s economy. The sultanate has always run at a natural gas capacity shortage and has historically relied on partially state-owned Petroleum Development Oman (PDO) to produce 70% of the country...

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