Overview
The Ministry of Energy and Minerals (MEM) is the sector regulator for Oman’s hydrocarbon, mining, and renewable energy industries. Restructured in 2020 to combine former Ministry of Oil and Gas functions with minerals oversight, MEM is responsible for:
- Concession agreements with exploration and production companies
- Oil and gas sector regulation
- Renewable energy policy and procurement oversight
- Mining sector development and regulation
- Energy efficiency standards
Hydrocarbon Sector Oversight
Concession agreements: MEM manages the concession framework under which PDO (Block 6), OQ (various blocks), and international E&P companies (Shell, BP, Eni, PTTEP, and others) operate. The PDO Block 6 concession — renewed through 2044 — is Oman’s most important single concession agreement.
Production sharing: For exploration blocks outside PDO’s concession, Oman uses production sharing arrangements with international oil companies (IOCs), providing government uplift through fiscal terms rather than direct equity.
Gas allocation: MEM coordinates gas allocation between competing users — power generation (OES mandate), PDO reinjection, petrochemical feedstock (OQ), and LNG export. Gas allocation decisions have significant economic implications.
Renewable Energy
MEM’s renewable energy responsibilities include:
Target setting: The 30% renewable electricity target by 2030 is MEM’s responsibility to achieve in coordination with OPWP (the procuring authority) and APSR (the regulator).
Green hydrogen policy: MEM leads the green hydrogen policy framework, working with OPAZ/SEZAD on zone-level development and with OPWP on the renewable electricity supply contracts needed by hydrogen project developers.
Mining Development
Oman’s mineral endowment — chromite (the largest chromite deposits in the Arabian Peninsula), copper (Sohar Copper, a major operation), limestone, gypsum, and potential rare earths — represents an underdeveloped economic resource. MEM’s mining directorate works to attract mining investment through licensing, geological survey data provision, and regulatory streamlining.