Oman Energy

Government plans to increase the country’s generation capacity and upgrade its transmission network look set to spur further growth in Oman’s utilities sector, against a backdrop of subsidy rationalisation.

Bucking global hydrocarbons trends, Oman is moving ahead with substantial investment across its upstream and downstream oil and gas industry.

While lower prices may limit new investments in Oman’s upstream energy sector, Iran’s return to international markets is likely to have a mixed effect on the sultanate’s economy. 

Domestic gas requirements are set to expand rapidly over the next few years as Oman’s industrial base expands and as the utilities sector grows to keep pace with rising demand for water and electricity. However, officials have said projected increases in gas production will be managed to ensure supplies can be guaranteed over the long term.

As Oman looks to tap further into its maturing fields, enhanced oil recovery (EOR) techniques the country has been instrumental in pioneering are playing an increasingly central role. Ensuring steady-to-rising output levels in the hydrocarbons sector will help insulate the Sultanate from the effects of any sustained decline in global oil prices.

Looking to maximise the benefit of its hydrocarbons reserves, Oman is investing in downstream oil-and-gas activities, including a new petrochemicals plant and an expansion at one of its refineries.