Energy

The strong headwinds of 2017 in Oman’s oil and gas sector have spurred the authorities to develop new sources of revenue. Despite recovering to 2015 levels of $55 a barrel, the steep fall in prices that saw Omani crude fall from $103 per barrel in 2014 to $40 in 2016 has squeezed state finances and added urgency to diversification efforts. On the back of a drop in crude output – following an agreement with the Organisation of the Petroleum Exporting Countries (OPEC) – overall economic growth in Oman remained flat in 2017, at roughly 0.3%, its weakest performance since 2011. However forecasts suggest growth will recover to 2.8% over the course of 2018, as gas production – particularly at BP’s new Khazzan gas field – expands and the non-oil economy steadies. This chapter contains an interview with Yousuf Al Ojaili, President, BP Oman.