In 2013, oil revenues accounted for 66% of Oman's exports, and approximately 39% of GDP. The country's oil reserves, which are estimated at 5.5 billion barrels, are considered deep, and therefore are costly to extract. Reduced production from old oil fields, coupled with the challenges in decreasing reserves levels, resulted in a production decline to 710,000 barrels per day (bbl/d) in 2007. However, new investments in 2008 and the implementation of EOR, led to a production increase, which reached 919,000 bbl/d by 2012. The Mukhaizna Oil Field, which has an estimated 2.1 billion barrels and is operated by the Oxy Group, was vital in achieving this output increase. Other projects that contributed to renewed growth include Block 8, run by the Rak Petroleum Company and South Korea's LG International, which is set to achieve a production of 10,000 bbl/d. Petroleum Development Oman (PDO), 60% of which is controlled by the government, is responsible for more than 85% of the nation’s production acreage. PDO obtained a concession agreement for 40 years beginning in 2004. In 2008, PDO invested about $70 million in appraisals and exploration. The Karim Project, which is under development by Medco Energy of Indonesia, is set to boost oil production in Oman as well. Once complete, the project is expected to increase production from about 12,000 bbl/d to an estimated 30,000 bbl/d. Rima Cluster, which is being developed by Petro gas, is also attempting to increase output from 2,000bbl/d to an estimated 7,000 bbl./d upon completion.
Petroleum Development Oman is responsible for the majority of the nation's output of natural gas. The country’s gas pipeline network is controlled by the Oman Gas Company (OGC), although management of the gas network has been contracted to private companies. The gas network in Oman is about 1,100 miles in length and connects various stakeholders. Oman has invested substantially in developing its gas reserves, which are estimated to be 30 trillion cubic feet. However, these reserves are not sufficient to meet current and future local demands. As a result, Oman will need to import gas to meet future demand. PDO has made additional investments to increase natural gas production. Other projects to boost production include the exploration of Block 63 by Petronas, as well as the exploration of Block 60 and Block 64 by other investors.
Oman features beautiful coastlines, mountain views, and numerous historic sites, and therefore receives about 1.96 million tourists each year. The tourism sector contributes about 3.3% of the nation’s GDP and employs approximately 37,000 people. However, the industry has suffered from poor infrastructure and inadequate investment. The government has recently increased investment through projects such as the expansion of Muscat International Airport, which will accommodate 12,000,000 passengers annually once complete. Salalah International Airport is also set for expansion, alongside Ras al-Hadd, Sohar, Adam and, Duqm. Other tourism projects include resort-like developments in various parts of the country, as well as a 6000-seat convention centre near Muscat International Airport. The Port of Sultan Qaboos is also being transformed in order to accommodate cruise ships and increased tourists.
Subsistence agriculture and animal herding are still common in Oman, and the country has 2.2 million hectares of irrigated, cultivable land. Currently, approximately 5.7% of Oman's total land area is used for permanent crops, which yields about 1.57 million tons of various agricultural produce. This produce is both consumed locally and exported. Advancement of Oman's agricultural industry is hindered by several factors, including inadequate water resources. The fishing industry employs at least 15,000 people directly, and up to 100,000 people indirectly. Commercial fisheries have been established in areas near Muscat, and the total amount of fish caught in 2011, through both traditional and commercial fishing, totalled 158,723 tons.
Mining in Oman is poised for growth in line with economic diversification plans, and the sector has distinct advantages over other developing markets. The country has some of the richest and most diverse mineral deposits in the world, ranging from gold and copper to potash, gypsum, chromite and limestone. Despite this, Oman’s mineral wealth remains largely uncovered. The sultanate holds a strategic location along global trade routes, and operates three ports in the north, centre and south of its territory. With planned infrastructure upgrades such as cross-country rail links and ongoing government reforms to facilitate investment, it is becoming clear that Oman is on the cusp of unlocking its mineral export potential.
World Heavy Oil Exhibition & Congress (WHOC)
Date : 03-09 Sept 2020
Place : Muscat, Oman
Oman Oil & Gas Exhibition & Conference (OGWA)
Date: 16-09 Sept 2020 Place : Muscat, Oman