Energy
From The Report: Oman 2016
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Hydrocarbons play a vital role in the Omani economy, comprising almost 50% of GDP and accounting for a large majority of government revenues. In total the government budgeted $3.9bn of spending on investment in oil and gas for 2015, representing an increase of 9.35% on the $3.6bn budgeted for 2014. Although the drop in oil prices has put considerable pressure on government revenues, the price drop has also forced producers to optimize processes. Indeed, Oman has become a testing ground for some of the most advanced extraction techniques currently in use, not to mention a host for new investment in downstream industries. The same commitment to technology should soon see production of natural gas hit new records. This chapter contains an interview with Raoul Restucci, Managing Director, Petroleum Development Oman.

Articles from this Chapter

Overview

Pressing ahead: New developments are planned to retain more of the value from hydrocarbons in-country
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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 custodianship and international partnership have instead seen output hit new records, with an average of over 1m bpd produced in July 2015. This resurgence…

Interview

Links in the value chain: OBG talks to Raoul Restucci, Managing Director, Petroleum Development Oman (PDO)
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Interview: Raoul Restucci How can the private sector, especially small and medium-sized enterprises (SMEs), help maximise efficiency in Oman’s hydrocarbons sector? RAOUL RESTUCCI: The oil and gas industry is highly specialised, and large-scale upgrading and enhancing of scope tends to be along the vertical comparative advantage axis. Exploration, refining and petrochemical activities, for example, mostly fall outside the scope of SMEs. However, across each level on the vertical scale, there are…

Analysis

Weathering the slump: Despite the fall in oil prices, Oman is working to maximise production
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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 reached at a time when global oil prices were in a slump and Dubai Mercantile Exchange (DME) crude futures were trading at less than $60 per barrel. Challenging…

Analysis

Adding value: The in-country value (ICV) scheme is expected to broaden domestic industry
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Companies working in Oman’s oil and gas sector are currently adjusting their operations in line with a government scheme aimed at making more of the extractive industry’s potential to benefit the broader national economy. The scheme, known as the ICV Blueprint Strategy, was unveiled in late 2013 and builds on previous successful practices to date which were aimed at achieving optimal value from the country’s petroleum resources. The Omani government defines ICV as “the total spend retained…

Analysis

Branching out: New investment is set to transform the downstream gas sector
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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 located in the port town of Salalah, will have a capacity to produce 327,000 tonnes of natural gas derivatives per year, including 153,000 tonnes of propane,…