As part of a broad series of austerity measures aimed at plugging the sultanate’s growing budget deficit, a joint council of the State Council and the Majlis Al Shura – both advisory bodies appointed by the sultan – voted on May 26, 2016 to increase the corporate tax rate on liquefied natural gas (LNG) firms from 15% to 55%. The new raft of...
Almost 50 years after the sultanate began shipping oil out of the port at Mina Al Fahal, the country’s economy remains closely tied to the fortunes of hydrocarbons. In 2015 oil and gas together accounted for 33.9% of GDP, 78.7% of government revenues and 59.4% of merchandise exports, according to the Central Bank of Oman.
Investments being made in refining infrastructure are leading to expanded capacity and production, raising questions about how to best make use of this growing resource. Up to three quarters of domestically refined petroleum products are currently used in the country, with a subsidy system that reinforces the market. However, with new capacity...
July 2015 was a time of mixed feelings for the Omani oil industry. On the one hand, there was celebration, as the sultanate broke the 1m barrels per day (bpd) mark for the first time in its history, with average production for the month exceeding the key benchmark. On the other hand, there was disappointment, because this milestone had been...
Two forthcoming infrastructure investments are set to substantially broaden the Omani downstream gas sector, creating opportunities for new export markets and new domestic industries. The two projects, which will see an estimated $3.6bn of investment, will be based at either end of the country. The first, a liquefied petroleum gas plant to be...
Hydrocarbons play a vital role in the Omani economy, comprising almost 50% of GDP and accounting for the large majority of government revenues. While 15 years ago it seemed this contribution was set to decline irrevocably – with production dropping from 970,000 barrels per day (bpd) to 710,000 bpd in the space of just seven years – careful...
Stay updated on how some of the world’s most promising markets are being affected by the Covid-19 pandemic, and what actions governments and private businesses are taking to mitigate challenges and ensure their long-term growth story continues.
Register now and also receive a complimentary 2-month licence to the OBG Research Terminal.
Register Here×