Oil & Gas

Oil and gas continue to play a central role in the economy, with an increasing focus on natural gas to support sustainable industrial development and long-term energy sector growth. The Oil & Gas industry has evolved significantly in recent years. Ongoing global economic uncertainty has increased pressure on oil and gas companies, requiring greater flexibility in investment planning and, in some cases, the scaling back of spending commitments in response to changing market conditions. Industry Background Oil has been a driving force of the economy since commercial production began in 1967. The national oil company, Petroleum Development Oman (PDO), is the primary oil producer and is 60% owned by the Government, with the remaining 40% held by foreign partners. In addition to PDO, other operators, including international energy companies, extract significant quantities of oil. Natural gas was discovered in 1978 in the Yibal/Natih field. To meet growing demand from power generation and water desalination, gas fields were brought into production. Recognising natural gas as a comparatively cleaner energy source, the Government has focused on expanding gas utilisation to support local industries and promote balanced economic growth. The country also holds natural gas reserves that are expected to play an increasingly important role in supporting industrial development in the coming years.