Energy
From The Report: Oman 2019
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The oil and gas sector is responsible for much of Oman’s economic growth and government revenue; thus, changes in the industry tend to reflect greatly on the sultanate’s overall development. Although recent years have seen a strategic shift towards economic diversification, activity in the hydrocarbons sector still attracts a large share of domestic and foreign investment, with this pattern likely to continue for some time. While the recent prolonged downturn in global oil and gas prices, coupled with the steady depletion of domestic resources, has given Oman some cause for concern, there are signs that the industry has turned a corner. This chapter contains an interview with Ahmed Saleh Al Jahdhami, CEO, Oman Oil Refineries and Petroleum Industries Company.

Articles from this Chapter

Overview

Pumped up: Reserve discoveries, new concessions and efficient technology leverage steady growth in global oil indices
OBG
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The oil and gas sector is responsible for much of Oman’s economic growth and government revenue, thus changes in the industry tend to reflect greatly on the sultanate’s overall development. Although recent years have seen progress towards diversification goals, hydrocarbons activity still attracts a large share of domestic and foreign investment, with this pattern likely to continue for some time. While the recent prolonged downturn in global oil and gas prices, coupled with the steady depletion…

Analysis

Combining assets: Mergers and acquisitions increase opportunities for growth
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The recent period of low global oil and gas prices has led to an increased incentivisation to streamline and rationalise the hydrocarbons sector’s administrative and corporate structures. Oman is a key player in this attempt to streamline, and recently there has been significant merging and rebranding of organisations that have traditionally held leading roles in the sector. These moves come as part of long-standing efforts by the sultanate to boost corporate integration, and this focus is expected…

Interview

Polymer potential: Ahmed Saleh Al Jahdhami, CEO, Oman Oil Refineries and Petroleum Industries Company (Orpic), on plans to expand
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Interview :Ahmed Saleh Al Jahdhami In what ways will Orpic’s planned expansions boost Oman’s energy security? AHMED SALEH AL JAHDHAMI: Orpic’s project portfolio comprises three items: the Sohar Refinery Improvement Project (SRIP), the Muscat Sohar Product Pipeline (MSPP) and the Liwa Plastics Industries Complex (LPIC). The SRIP and the MSPP are now operational and are primarily focused on meeting Oman’s growing energy needs. The SRIP has increased the Sohar refinery’s production…

Analysis

Refined development: The Duqm refinery project will double downstream throughput and drive growth in an array of adjacent segments
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In April 2018 the foundation was laid for one of the sultanate’s largest engineering ventures – the $7bn integrated refinery at Duqm. Indeed, according to industry media, its construction will account for some 8% of Oman’s entire GDP in the years preceding its completion in 2022. The refinery will form a key part of the country’s overall oil and gas development strategy by securing its position in the global refining market. The scheme illustrates the benefits the sultanate can offer as…

Analysis

Safeguarding trade: Amid shifting geopolitics and trade relations, Oman looks to China and beyond to sustain petroleum exports
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The sultanate’s continuing efforts to boost extraction, develop greenfields and refine its processing capacity are largely intended to support trade links that ultimately see the vast majority of its oil consumed far afield from Oman itself. According to data from the National Centre for Statistics and Information (NCSI), of the 265.5m barrels – 236m of crude and 29.5m of condensate – produced by Oman in the first three quarters of 2018, 222.6m, or 83.8%, were shipped abroad. One trade partner…

Analysis

Breaking the mould: Renewable projects set the stage for a more sustainable future
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Oman has made some major moves to diversify its energy mix, as indicated by the commissioning of new renewable energy (RE) projects. The sultanate has set a precedent by bringing RE into the oil and gas upstream via new innovative schemes. One of these new schemes involves Petroleum Development Oman (PDO), which announced on October 29, 2018 that it had contracted Omani-Japanese Marubeni consortium to construct a 100-MW solar photovoltaic (PV) power plant under an independent power producer (IPP)…