• Admin
• Aug 26, 2025
• Business Optimization

Exploring the Oil & Gas Industry in Oman: Key Players and Future Prospects

Oman, situated on the southeastern coast of the Arabian Peninsula, stands as a significant oil and gas producer in the region. With a well-established petroleum sector that has historically been a fundamental part of the nation’s economy, Oman is actively investing in both upstream and downstream initiatives, while also working towards a more sustainable energy future.

This blog delves into the prominent oil and gas companies operating in Oman, their contributions to the economy, and the changing energy landscape.

Why Oman is Important in the Global Oil & Gas Industry

Oman is not part of OPEC, which allows it greater flexibility in managing its production levels. The nation produces approximately 1 million barrels of crude oil daily and possesses substantial natural gas reserves. The government has implemented ambitious strategies to improve recovery rates from aging fields and to diversify the economy through downstream ventures such as refining and petrochemicals.

Major Oil & Gas Companies in Oman

1. Petroleum Development Oman (PDO)

Ownership: 60% Government of Oman, 34% Shell, 4% TotalEnergies, 2% PTTEP

Role: PDO stands as the foremost exploration and production entity in Oman, accounting for over 70% of the nation’s crude oil output and nearly all of its natural gas supply.

Projects: Initiatives include Enhanced Oil Recovery (EOR) projects, digital oilfield technologies, and gas development in the northern and central regions of the country.

2. OQ

Ownership: Fully owned by the Government of Oman

Role: OQ operates as a global integrated energy group overseeing investments throughout the oil & gas value chain—from upstream exploration to refining, petrochemicals, and trading.

Projects: Key projects include OQ8 (previously known as Duqm Refinery), OQ Chemicals, and various gas pipelines and infrastructure developments.

3. Occidental Oman (Oxy Oman)

Ownership: A subsidiary of Occidental Petroleum (USA)

Role: Recognized as one of the largest independent oil producers in Oman, particularly noted for its operations in Block 9 and Block 27.

Projects: The focus is on enhanced oil recovery and tight gas production, with a strong commitment to innovation and sustainability.

4. TotalEnergies Oman

Role: TotalEnergies has maintained a presence in Oman for decades, both as a stakeholder in PDO and through its own upstream activities.

Projects: Collaborating with OQ and Shell on green hydrogen projects and gas development, along with investments in the Duqm area.

5. Shell Oman

Role: Engaged in upstream, downstream, and energy transition initiatives.

Projects: Shell participates in gas production, the establishment of energy hubs, and clean energy projects such as green hydrogen in partnership with the Omani government.

Emerging Players & New Developments

Alongside established entities, numerous international and regional firms have made their way into the Omani market via exploration blocks and service agreements. These include:

Eni Oman – Engaged in offshore exploration.

Tethys Oil – A Swedish oil firm with significant assets in onshore Oman.

CC Energy Development (CCED) – Active in Blocks 3 & 4, recognized for its mid-sized oil fields.

The Future of Oil & Gas in Oman

The Omani government has taken proactive steps to align with global energy trends. Vision 2040—the nation’s long-term development framework—seeks to lessen reliance on hydrocarbons and foster a diversified, knowledge-driven economy. Nevertheless, oil and gas will remain pivotal in financing this transition.

Key areas of future growth encompass:

Enhanced Oil Recovery (EOR): Essential for optimizing output from mature fields.

LNG Expansion: Oman LNG is scaling up to satisfy the increasing demand from Asia.

Green Hydrogen: Oman aspires to emerge as a leading hydrogen exporter, with initiatives in Duqm and Salalah already in progress.

Carbon Capture and Storage (CCS): Pilot initiatives are being investigated as part of decarbonization strategies.

Conclusion

Oman's oil and gas industry continues to be vibrant and crucial to its economy. With a combination of national leaders like PDO and OQ, along with global collaborators such as Shell, TotalEnergies, and Occidental, the nation is strategically positioned to navigate the delicate balance between fossil fuel development and the global transition towards cleaner energy.

As the energy landscape evolves, Oman consistently demonstrates its capability not only as a dependable oil and gas producer but also as an innovative energy leader in the Gulf region.