97
0
200
400
600
800
1,000
1,200
'000 b/d
Source: Wood Mackenzie (April 2014), BP Statistical Review of World Energy (June 2014).
Oman’s Ministry of Oil and Gas co-ordinates the state’s role in the country’s hydrocarbon sectors, with final approval
for policy and investment resting with the sultan of Oman, who also holds the office of prime minister. The
implementation of oil policy is done through an integrated company in which the Sultanate of Oman owns the majority
stake. Petroleum Development Oman (“
PDO
”) holds more than 90% of Oman’s oil reserves and is responsible for 85%
of its production. Aside from the government’s 60% ownership, Shell (34%), Total (4%), and Portugal’s Partex (2%) all
own stakes in PDO. Occidental Petroleum has the largest presence of any foreign firm and is the second largest oil-
producer in Oman. Other major players with interests in Oman include: Shell, Total, Partex, BP, CNPC, KoGas and
Repsol. These international and foreign national oil companies generally operate in Oman under service contracts. See
“
The Group’s business—The Group’s operations—Oman—fiscal regimes
.”
According to the EIA, in 2011, Oman consumed approximately 98,000 bbl/d of petroleum products. Consumption has
increased over the last decade, nearly doubling from a level of 52,000 bbl/d in 2000. Though Oman is a significant net
exporter of petroleum, it is not a member of OPEC. As is the case with other exports from the Gulf, Asia is the main
consumer market for Omani crude, led by China, Thailand, South Korea and Japan.
Oman’s pipeline system is mostly focused on delivering crude oil to the country’s only oil export terminal at Mina al-
Fahal. Located near the capital, Muscat, both the export terminal at Mina al-Fahal and the Main Oil Line feeding the
facilities are run by PDO.
Gas
According to the BP Statistical Review, as at 31 December 2012, Oman had 0.9 Tcm of proven natural gas reserves. Due
to increasing EOR applications, rising domestic demand, and export obligations, Oman’s gas demand has outpaced its
production. The Ministry of Oil and Gas is aggressively seeking to increase exploration and production from its reserves.
In 2013, Oman produced approximately 30.9 Bcm of natural gas. Natural gas production has almost doubled between
2003 and 2013. Production is expected to continue to grow as multiple international companies, including Petrogas E&P
LLC, Occidental Petroleum Corporation and Shell, are in various stages of licensing, exploring, producing, and
expanding fields.
Oman Gas Production 2000-2020
