Energy

Oil and gas remain key economic contributors in Oman, with hydrocarbons accounting for 85.7% of government revenues in 2013. New partnerships with the private sector have led to some of the most advanced enhanced oil recovery (EOR) projects in the world with the use of solar-fired EOR technologies playing an increasingly important role in the sector. The sultanate is expected to substantially increase its domestic supply of natural gas in the coming years via production at the Khazzan tight gas reserves. Downstream, new refinery and petrochemical developments at Duqm and Sohar will see Oman capitalise on its geographic location. Although falling world oil prices have created a stormier forecast for hydrocarbons export revenues, rising domestic demand, along with targeted economic diversification policies that aim to reduce oil’s share of GDP to 9% by 2020, should ensure that the country avoids the worst of global market shocks over the longer term. This chapter contains interviews with Salim Nasser Said Al Aufi, Undersecretary, Ministry of Oil and Gas; and Harib Al Kitani, CEO, Oman LNG.