Energy
From The Report: Oman 2017
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Almost 50 years after it began shipping oil out of the port at Mina Al Fahal, the sultanate’s economy remains closely tied to the fortunes of hydrocarbons, which in 2015 accounted for 33.9% of GDP, 78.7% of state revenues and 59.4% of goods exports. Although 2015 was challenging for the nation’s oil and gas sector, the government is expected to keep crude production near its current level of 1m barrels per day through to at least 2020, and sector activity is thus likely to remain fairly constant despite the downturn. The sultanate’s underexploited offshore areas and attractive business environment meanwhile continue to offer opportunities for international oil and gas firms. This chapter contains an interview with Chris Breeze, Country Chairman, Shell Oman.

Articles from this Chapter

Overview

In the pipeline: Efficiency is the watchword in the new low-price environment
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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. International Factors Positive developments in production have been unable to fully counteract the fall in prices since 2014. The average price of a barrel of Omani crude dropped…

Analysis

An air of refinement: The fuel market has seen some changes with an increase in capacity for exports and the adjusted pricing of retail fuel
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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 increasing the potential for further exports, there are suggestions that priorities for refined products may shift. At the same time, the government is adjusting…

Interview

The way forward: Chris Breeze, Country Chairman, Shell Oman, on solutions to meeting the sultanate’s power demands
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Interview:Chris Breeze What benefits have arisen from the country’s in-country value (ICV) policies? CHRIS BREEZE: ICV makes good business sense. Local capacity building and encouraging local content empowers local contractors and suppliers to become self-sufficient. This, is turn, increases efficiency and effectiveness in the way our Omani partners and their contractors operate. A good example are repairs being done quickly and effectively in Oman, rather than the lengthy process of equipment…

Analysis

Plenty more in store: A host of logistics projects are set to boost the sultanate’s global standing
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The uncertainties surrounding global oil production and price have done little to suppress interest in liquid bulk storage and hydrocarbons logistics projects in Oman. Across the sultanate hundreds of kilometres of pipeline are being laid, and new facilities for gas and oil storage and export are coming on-stream. At the same time, low oil prices have strained state finances and made it harder to fund large infrastructure projects. As a result, state-owned oil and gas companies driving developments…

Analysis

Liquid assets: Producers of LNG are bracing themselves for a tax hike
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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 legislation, which is subject to approval by royal decree, will bring the taxation of LNG production activities into line with that of oil exploration…