Definition
Oman is a significant crude oil producer, ranking as the largest non-OPEC oil producer in the Middle East. Oil was first discovered commercially in the Yibal field in 1962, and exports began in 1967. Today, Oman produces approximately one million barrels per day, primarily from fields in the interior desert managed by Petroleum Development Oman (PDO) and several other operators. While not an OPEC member, Oman participates in the OPEC+ production agreement alongside Russia and other non-OPEC producers.
Context in Oman
The oil sector remains the backbone of the Omani economy despite decades of diversification efforts. Petroleum Development Oman (PDO), a joint venture between the Oman government (60 percent), Shell (34 percent), Total (4 percent), and Partex (2 percent), is the largest producer, operating in a concession area covering roughly one-third of the country. Other significant operators include Occidental Oman (Block 9 and Block 62), BP (Block 61 Khazzan tight gas), and several smaller independents. Oman fields tend to be geologically complex, requiring advanced techniques like enhanced oil recovery (EOR), horizontal drilling, and polymer flooding to maintain output from mature reservoirs.
Key Data Points
| Metric | Value |
|---|---|
| Daily production (2023) | ~1.05 million barrels |
| Largest operator | Petroleum Development Oman |
| First oil discovery | Yibal field, 1962 |
| First oil exports | 1967 |
| OPEC+ participation | Yes (non-OPEC partner) |
Vision 2040 Connection
Oil production revenues remain the primary funding source for Vision 2040 implementation in the near term. The strategy acknowledges the need to sustain production through EOR and new field development while progressively reducing the economy dependence on hydrocarbon exports. Responsible resource management ensures revenue availability to finance the transition to a diversified economy.
Further Reading
- [[What is EOR Enhanced Oil Recovery]]
- [[What is Non-Oil GDP]]
- [[What is Oman LNG]]