Overview
The oil and gas sector in Oman represents a significant component of the Sultanate’s economic landscape. As Oman pursues its Vision 2040 diversification agenda, this sector has attracted growing attention from policymakers, investors, and industry participants alike. This page provides a comprehensive analysis of oil and gas in Oman, covering market fundamentals, competitive dynamics, strategic alignment, and forward-looking investment considerations. Understanding the current state and trajectory of oil and gas is essential for stakeholders seeking to participate in Oman’s economic transformation.
Market Size & Growth
Oman’s oil and gas sector has historically contributed approximately 30 percent of the nation’s GDP, making it the backbone of the Omani economy. The Sultanate produces around 1 million barrels of crude oil per day and holds proven reserves estimated at over 5 billion barrels. Natural gas reserves stand at approximately 24 trillion cubic feet, supporting both domestic consumption and LNG exports. The energy sector’s total value exceeds 15 billion OMR annually, with significant upstream and downstream activities spread across the country.
Key Players
Major operators in Oman’s energy sector include Petroleum Development Oman, which accounts for the majority of crude output, alongside OQ Group, the state-owned integrated energy company. International partners include Shell, TotalEnergies, BP, and Eni, who participate in various concession areas. Oman LNG and Qalhat LNG operate the liquefaction facilities, while Hydrogen Oman (HYDROM) leads the green hydrogen initiative. The Ministry of Energy and Minerals oversees sector regulation and licensing.
Vision 2040 Alignment
Under Oman Vision 2040, the energy sector is undergoing a strategic transformation aimed at reducing hydrocarbon dependency while maximising value from existing resources. The National Energy Strategy targets 30 percent renewable energy capacity by 2030, with major solar and wind projects under development. Green hydrogen has emerged as a flagship priority, with multiple gigawatt-scale projects announced across the Sultanate. Enhanced oil recovery techniques are extending the productive life of mature fields, ensuring continued revenue streams during the transition period.
Investment Outlook
Investment opportunities in Oman’s energy sector span traditional hydrocarbon development and emerging clean energy technologies. The government has announced concession rounds for new exploration blocks while simultaneously tendering large-scale renewable energy projects. Green hydrogen projects alone represent potential investments exceeding 30 billion USD over the coming decade. Public-private partnerships are actively encouraged, with attractive fiscal terms for both domestic and international investors seeking exposure to the Gulf region’s energy transition.