Energy
From The Report: Oman 2025
View in Online Reader
Oil and gas remain the largest contributors to Oman’s economy, accounting for about a third of its GDP and playing a key role in employment and exports. Exploration, production and infrastructure upgrades in this sector offer significant opportunities for international investment. While the country continues to maximise the value of its remaining hydrocarbons resources, it is also positioning itself as a growing regional player in renewable and alternative energy. Efforts to attract private investment in solar, wind and hydrogen projects reflect a broader national push towards sustainability. These initiatives support the sultanate’s long-term goal to achieve net-zero emissions by 2050.
This chapter contains interviews with Mazin Rashid Al Lamki, CEO, Energy Development Oman; Aflah Al Hadhrami, Managing Director, Petroleum Development Oman; Hamed Al Naamany, CEO, Oman LNG; Abdulaziz Shidhani, CEO, Hydrom; Mansoor Al Abdali, CEO, OQ Gas Networks; and Salim Al Hashmi, Managing Director, Oman Tank Terminal Company.
Articles from this Chapter
Exploration and production: Hydrocarbons remain central while renewables and alternative energy gain momentum in a shifting global market
Shifting gears: Mazin Rashid Al Lamki, CEO, Energy Development Oman, on ways the sector is adapting to meet renewables targetsOBGplus
Interview: Mazin Rashid Al Lamki How do you see the sector evolving over the next 10 years in response to global energy shifts? MAZIN RASHID AL LAMKI: Oman’s energy sector is poised for broadbased expansion across hydrocarbons and renewables. Our resource assessments are nearing completion, and early data shows stronger-than-expected potential in oil and gas. At the same time, we are conducting extensive solar and wind surveys, which will help define a clearer energy mix for domestic and export…
Leveraging resources: Aflah Al Hadhrami, Managing Director, Petroleum Development Oman (PDO), on how sustainability objectives affect exploration strategies, and contribute to economic diversificationOBGplus
Interview: Aflah Al Hadhrami In what ways are goals for the oil and gas sector under Oman Vision 2040 shaping current exploration and production strategies? AFLAH AL HADHRAMI: Oman Vision 2040 has a significant influence on exploration and production strategies in the oil and gas sector, with a clear focus on reducing dependency on hydrocarbons and promoting sustainable, inclusive growth. This approach emphasises both maximising economic returns from hydrocarbons resources and achieving carbon…
Hydrogen horizons: The country’s abundant natural resources and strategic location position it as a key player in the global green hydrogen marketOBGplus
Oman released its green hydrogen strategy in 2022, simultaneously establishing Hydrogen Oman (Hydrom), a government-owned private entity mandated to implement strategy and manage and attract investment in the country’s nascent hydrogen industries. The five strategic directions laid out in the Green Hydrogen in Oman policy document state that the development of Oman’s hydrogen sector should contribute to national and international energy security; aid economic diversification; help decarbonise economic activities; establish strong export markets and attract foreign direct investment; and support national innovation and local talent development.…
Power play: Hamed Al Naamany, CEO, Oman LNG, on how developments in natural gas production are contributing to sustainable outcomesOBGplus
Interview: Hamed Al Naamany How does the global transition to sustainable energy sources influence natural gas production and liquefied natural gas (LNG) strategies? HAMED AL NAAMANY: The global shift towards renewable energy sources has led Oman to strategically position natural gas, especially LNG, as the most versatile resource in the energy mix that complements the development of renewables. Natural gas plays a critical role in reducing coal dependency, given its lower carbon footprint and…
Accelerating development: Abdulaziz Al Shidhani, Managing Director, Hydrogen Oman (Hydrom), on attracting long-term green hydrogenOBGplus
Interview: Abdulaziz Al Shidhani How is Oman leveraging the land allocated for green hydrogen projects to drive investment and accelerate large-scale production? ABDULAZIZ AL SHIDHANI: The 50,000 sq km allocated for green hydrogen is situated within a broader 65,000-sq-km zone earmarked by legislation to support the sultanate’s energy transition plans. This step laid the groundwork for a national green hydrogen strategy. We have completed a comprehensive master planning exercise for the plot…
Climate solutions: Offshore innovation combines wave and solar technologies to reduce carbon emissions and become a leader in renewable energyOBGplus
Oman’s economy remains heavily dependent on fossil fuels; however, the country is emerging as a key player in renewables. To finance economic diversification, it is expanding hydrocarbons production while adopting advanced technologies to decarbonise the sector and meet its 2050 net-zero pledge. Sustainability strategies further aim to cut emissions through renewable energy integration, gas flaring reductions and efficiency upgrades. “The drive toward industrial decarbonisation in Oman highlights the balance between leveraging existing oil and gas expertise and transitioning to greener alternatives,” Siddharth Malik, CEO of Vulcan Green…
Green goals: Emerging markets are navigating the rising cost of solar powerOBGplus
With high energy prices and supply chain disruptions creating shortages of renewable energy components and materials, emerging markets are reassessing how to build out utility-scale solar power to accelerate their energy transitions. After more than a decade of decline, the cost of solar photovoltaic (PV) panels has risen around the world, due primarily to the increasing cost of solar-grade polysilicon in China. A key component in PV panels, polysilicon spot market prices rose from under $7 per kg in July 2020 to $39 in August 2022. Though a slowdown in sales contributed to a drop to $22.90 in May 2024, sales are expected to revive in 2025. China…
Vital connections: Mansoor Al Abdali, CEO, OQ Gas Networks (OQGN), on developing energy infrastructure to support sustainability and diversification objectivesOBGplus
Interview: Mansoor Al Abdali How has Oman’s focus on diversification and sustainability influenced infrastructure planning? MANSOOR AL ABDALI: The country’s vision is clear: continue meeting domestic gas demand while preparing for the coming growth in hydrogen. This will require balancing investment in traditional gas infrastructure with the development of hydrogen transport capabilities. To achieve this, we are expanding connections to zones like Duqm and Sohar, where the government is attracting…
Future flow: Salim Al Hashmi, Managing Director, Oman Tank Terminal Company, on the country’s transformation into a strategic energy storage and export centreOBGplus
Interview: Salim Al Hashmi How would you describe the evolution of Oman’s energy storage infrastructure? SALIM AL HASHMI: Historically, Oman’s energy storage segment was fragmented, with small, project-specific facilities scattered across different regions. Storage capacity was largely captive, serving local production needs without an integrated national strategy. Over time, there has been a shift towards developing centralised, strategic centres. One of the key developments has been the creation…
Positioning for growth: Emerging market producers strive to secure greater market shares amid an evolving industry landscapeOBGplus
The EU has continued to scale back its reliance on Russian oil, deepening its strategic response to Russia’s ongoing war in Ukraine. After the bloc imposed bans on Russian seaborne crude in December 2022 and oil products in February 2023, the region has systematically sought alternative suppliers. In 2024 EU petroleum oil imports fell by 2.4% in volume and 4.7% in value compared to 2023, reflecting both reduced dependence on Russia and broader economic adjustments. The region remains committed to phasing out Russian energy imports by 2027, a move that has reshaped global trade flows and forced traditional suppliers to pivot to alternative markets…
Transition planning: Alternative energy demand and production are picking up pace in line with the shift away from hydrocarbonsOBGplus
The energy transition advanced in 2023 despite geopolitical tensions, supply chain disruptions and inflationary pressures that maintained elevated energy prices globally. Prices fell from 2022’s historic peaks but remained higher than pre-2020 levels, potentially signalling a turning point in the shift from hydrocarbon dependence toward lower-cost clean energy alternatives. Hydrocarbons’ uneven global distribution, vulnerable supply chains and volatile pricing present ongoing challenges. While hydrocarbons-producing countries achieved record revenue in 2022, renewable energy capacity grew by over 8% that year, exceeding 300 GW for the first…
