Energy
From The Report: Oman 2020
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The energy sector in Oman has continued to evolve within a context of uncertain economic conditions and a rapidly changing global energy landscape. Becoming a leader in the development of enhanced oil recovery techniques has allowed it to maintain high production rates. At the same time, major gas discoveries and the launch of a series of big-budget projects have significantly raised the country’s profile as a producer and exporter of gas and related products. Notably, government incentives are encouraging industry heavyweights to implement renewable alternatives in the extraction of oil and gas where possible, both to preserve gas stock and reduce the sector’s carbon footprint. This chapter contains interviews with Musab Al Mahruqi, CEO, Oman Oil and Orpic Group; and Mohammed Al Jahwari, CEO, Hydrocarbon Finder.

Articles from this Chapter

Overview

Adapt to evolve: Diversification and value addition remain long-term goals as a raft of large-scale projects come on-line
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The energy sector in Oman has continued its familiar pattern of adapting and evolving within a context of uncertain economic conditions and a rapidly changing global energy landscape. Becoming a leader in the development of enhanced oil recovery (EOR) techniques has allowed it to maintain high production rates and ensure oil retains its position as the country’s primary economic contributor. At the same time, major gas discoveries and the launch of a series of big-budget projects have significantly…

Interview

Unlocking opportunities: Musab Al Mahruqi, Group CEO, OQ, on the benefits of strategic partnerships and new technologies
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Interview:Musab Al Mahruqi How will the integration of Oman Oil and Orpic Group into OQ redefine your strategy? MUSAB AL MAHRUQI: Based on the group’s current business profile and our existing commitments moving forward, we remain committed to growth, and have plans for investment of around $28bn over the course of the next decade. This evolution will be driven by fundamental changes in both the composition and scale of the group’s businesses. Upstream production, including both operated…

Analysis

Fresh phase: Technological advancement is encouraging hydrocarbons exploration and production
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The exploration and production (E&P) of natural gas reserves is defining advancements in Oman’s upstream segment, with the sultanate pursuing a policy of inviting major global players to develop reserves of non-associated gas. Since the successful commissioning of the Khazzan tight gas project in 2017, which added 1bn standard cu feet per day (scfd) to the country’s gas supply, a number of largescale E&P projects – including the second phase of the Khazzan field – are set…

Interview

Mohammed Al Jahwari, CEO, Hydrocarbon Finder, on supporting: exploration and production activities Smarter approach
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Interview:Mohammed Al Jahwarib What will be the importance of integrated project management (IPM) in the coming years? MOHAMMED AL JAHWARI: IPM brings efficiency through a more holistic approach to project execution. In the case of exploration and production (E&P) operators should be focused on the bigger picture and regulatory compliance. The priority should be the integration of funding, planning, managing and monitoring contractors to ensure the smooth execution of government-approved…

Analysis

On the up: Value addition benefits from new developments, export growth and the merger of two sector giants
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The downstream segment is rapidly growing its refining and petrochemicals capacity, while plans are under way to bring gas-to-liquids (GTL) technology to Oman for the first time. As a backdrop to these developments, the integration of the Oman Oil Company (OOC) and the Oman Refineries and Petroleum Industries Company (ORPIC) into the newly rebraned OQ has re-energised both companies and spawned value-added initiatives. Refining & Petrochemicals Oman celebrated a significant year for…

Analysis

Home grown: Domestic companies benefit from government programmes aimed at developing in-country value and local talent
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Since its emergence in 2011, the concept of in-country value (ICV) has proven to be one of Oman’s most influential exports, taking hold in energy industries across the GCC. The strategy launched by the Ministry of Oil and Gas (MOG) in 2013 has led to a significant number of training opportunities and sizeable economic returns. With international petroleum companies receiving favourable treatment for choosing local providers when it comes to sourcing goods and services, the programme has…

Analysis

End-user to the east: Oman eyes China to provide a market for its natural gas supply
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In a context of growing international gas supply and expected demand moderation in the developed markets of US and Europe, Oman is hoping its strategic partnership with China will provide it with a ready market for its growing supply. In May 2018 Xi Jinping, the president of China, and Sultan Qaboos bin Said Al Said formalised the Sino-Oman strategic partnership aimed at elevating ties between the two countries. This was followed in November 2019 with an official visit to Oman by Wang Yang,…

Overview

As costs decline, renewable sources are seeing an inexorable: rise, particularly among developing economies Cheaper and greener
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Although the world remains largely dependent upon fossil fuels for power generation, a gradual transition towards renewable sources has been taking place since the 1990s, underpinned by multilateral deals such as the Kyoto Protocol, the Doha Amendment and, more recently, the Paris Agreement. Investment and development in renewable technologies has historically been led by developed countries, however, in recent years the renewable energy industry has expanded in emerging markets. In 2018 these markets accounted for nearly 70% of new global investment in renewables. Taking the Lead Emerging markets exceeded developed economies in terms…