Oman marks 100 years since oil and gas discovery

Muscat: The Ministry of Energy and Minerals on Monday commemorated the centenary of the discovery of oil and gas in the Sultanate of Oman. The ceremony was held under the patronage of HH Sayyid Shihab bin Tarik al Said, Deputy Prime Minister for Defence Affairs, at the Royal Opera House Muscat.

The event highlighted the historical milestones of the energy sector since the signing of the first exploration concession in 1925. It reviewed the major transformations that have contributed to building the national economy and establishing an integrated infrastructure for the oil and gas industry, culminating in the Sultanate of Oman's future strategic directions in renewable energy and green hydrogen.

In his address, Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, stated that the completion of a full century since the first practical step in oil exploration represents a defining historical milestone. This achievement embodies the efforts of successive generations who overcame formidable challenges and limited capabilities to establish a sector that now stands as one of the most vital pillars of the national economy and a key driver of sustainable development.

He noted that the journey began with the signing of the first concession agreement with the D'Arcy Exploration Company on May 18, 1925. This was followed by the foundational phase, marked by the drilling of the 'Dauka-1' well in 1955, before the sector underwent a significant transformational leap in the 'Fahud' region. The first shipment of Omani crude was exported from Mina Al Fahl port in 1967, with an average initial production of 5,000 barrels per day (bpd). on Monday, the sector produces nearly one million bpd, reflecting the accumulated expertise and the advanced development of the Sultanate of Oman's operational, administrative and technical systems.

Al Aufi affirmed that Oman's enduring political stability has been instrumental in cementing investor confidence and attracting international partnerships. He emphasized that such regional and international collaborations have been a fundamental pillar of the sector's growth, citing the Duqm Refinery and Petrochemical Industries project—launched last year with an investment exceeding RO 3.5 billion—as a prime example.

He reviewed the evolution of concession area management, which now encompasses 58 areas, including 34 operational blocks, with 16 companies developing fields and production under the highest governance standards. Current oil reserves are estimated at approximately 4.8 billion barrels, while natural gas production reaches about 150 million cubic meters per day, supported by an extensive infrastructure network spanning thousands of kilometers of pipelines.

Regarding In-Country Value (ICV), the minister confirmed that sector expenditure over the past decade amounted to RO 11 billion, with RO 700 million directed specifically to Small and Medium Enterprises (SMEs) last year alone. In 2024, the Ministry launched the 'Majd' ICV program, which awarded its first accreditation certificate in the energy and minerals sector to Abraj Energy Services.

Al Aufi highlighted that the human element remains the sector's most valuable asset, with nearly 20,000 employees in operating companies achieving an Omanization rate of 93 percent. The sector also recorded 285.5 million working hours without a Lost Time Injury (LTI) in 2024, underscoring its deeply ingrained culture of safety.

He clarified that social responsibility has been a consistent priority for operating companies, which have collectively invested nearly RO 50 million over the past five years in community projects both nationally and within concession areas.

Concluding his speech, the minister stated that marking the oil and gas centenary is a tribute to a national journey forged by determination, knowledge and hard work. It reaffirms Oman's commitment to further developing the sector, enhancing its economic role, empowering national talent and confidently advancing into a new era of energy transition.

The ceremony featured the unveiling of a commemorative postage stamp marking the 100th anniversary of Oman's oil and gas journey. This stamp serves as a documentary symbol of historical significance, encapsulating a century of transformation and achievement. It stands as an archival record that honors this occasion and educates future generations about the milestones of the Omani energy sector.

The oil and gas sector has played a pivotal role in establishing the foundations of the national economy and driving comprehensive development in the Sultanate of Oman. As a primary source of public revenue, it has been a key engine for economic growth, enabling the expansion of investments and the development of infrastructure and services. Its impact extends beyond production and export, supporting and stimulating broader sectors intrinsically linked to economic prosperity, including transport, industry, communications, trade, investment and logistics. The sector's contributions—through taxes, fees and various economic enablers—strengthen the state's capacity to implement its strategic development programs.

In the context of sustainable development, the sector has reinforced its socio-economic presence through corporate social responsibility initiatives, support for community projects and efforts to enhance quality of life. It also serves as a key enabler for education, innovation and knowledge by supporting universities, colleges, scientific research and specialized training, thereby boosting the knowledge economy and elevating the competitiveness of national human resources. The development and qualification of Omani talent has been a constant focus throughout the sector's history, achieved through targeted training, employment, Omanization programs and the cultivation of specialized expertise.

The sector's role in supporting sustainability is evident as an active partner in reducing environmental impact and enhancing resource efficiency. This is achieved through the adoption of clean energy solutions and environmentally focused projects that balance production needs with ecological stewardship. Notable examples include Petroleum Development Oman's (PDO) 'Miraah' project—one of the world's largest solar steam projects—the Wetland project, which created a green oasis in the desert, and the eco-friendly Nimr Water Treatment Plant. Further initiatives include the 100 MW 'Amin' Solar Energy project, the 200 MW 'Riyah 1' and 'Riyah 2' wind projects, and the 100 MW Solar Energy project in the northern concession areas.

Operating companies also contribute to sustainable energy initiatives such as the Solar Energy for Schools project, Oman Shell's 'Qabas' Solar Energy project and the launch of the Sultanate of Oman's first Green Hydrogen station as part of Oman Shell's efforts. These endeavors reflect the sector's strategic direction toward low-emission solutions and the enhancement of both environmental and economic sustainability.

As part of the centennial celebrations, an exhibition commemorating 100 years of oil and gas discovery in Oman was inaugurated. The exhibition will be open to visitors from, on Tuesday, until this Wednesday. It offers documentary and visual content narrating the sector's evolution over a full century. The exhibition features various sections, including a corner for models and samples related to the oil and gas industry, a display of four portraits of Oman's Sultans and a Historical Documents corner presenting ten pivotal documents chronicling key stages of the sector's journey. Additionally, it includes an area with 100 infographic images and a dedicated infographic honoring individuals who have served in the sector. A historical timeline display spans two eras—from 1925 to 1970 and from 1970 to 2025—showcasing the most significant periods and projects across a century of development.