Oman updates Net Zero Strategy, launches carbon framework

Muscat: The Ministry of Energy and Minerals unveiled the updated Net Zero Strategy and the regulatory framework for carbon markets during a media briefing held at the Ministry’s headquarters on May 13, 2026, reinforcing the Sultanate of Oman’s commitment to achieving carbon neutrality by 2050 and strengthening its position as a regional hub for green hydrogen and renewable energy.

The briefing was attended by Eng Salim Nasser al Aufi, Minister of Energy and Minerals; Mohsen Hamad Al Hadhrami, Under-Secretary of the Ministry, alongside officials and media representatives.

The updated strategy developed by the Ministry of Energy and Minerals, represented by the Oman Net Zero Center, is grounded in a realistic assessment of emissions pathways based on the latest data. It outlines emissions reduction priorities in alignment with the national economy, identifies the required enablers and financing mechanisms, and explores opportunities to transition towards a low-carbon economy.

Al Aufi stated that the adoption of the updated national Net Zero Strategy marks a strategic step towards building a resilient, sustainable, and low-carbon economy, further strengthening Oman’s global standing and aligning with the objectives of Oman Vision 2040.

He explained that the net zero pathway delivers significant economic and climate benefits by advancing green industries and enhancing the Sultanate’s competitiveness in the sector, while also introducing advanced emissions-reduction technologies and contributing to GDP growth.

Al Aufi added that the regulatory framework for carbon markets represents one of the key enablers supporting the implementation of the strategy. The framework establishes a comprehensive national regulatory structure for carbon markets in the Sultanate of Oman, setting out clear rules and streamlined procedures that encourage the participation of the private sector as well as small and medium-sized enterprises. This, in turn, is expected to create broader employment opportunities and diversify sources of income for the national economy.

The regulatory framework for carbon markets aims to achieve several key objectives, including transforming the targeted 33% emissions reduction by 2035 into investable, verifiable, and tradable carbon credits. It also seeks to attract international and private investments into mitigation and adaptation projects across seven key national sectors, while reinforcing.

Oman’s position as a trusted supplier of high-integrity carbon credits governed by robust standards in global markets.

Oil and Gas Sector

Eng Al Aufi noted that the oil and gas sector recorded balanced performance in 2025, combining sustainable production, expanded exploration activities, and enhanced operational efficiency.  During 2026, a bid round covering five concession areas was announced for investment, alongside continued efforts to maintain production levels and ensure reserve stability.

The Minister highlighted that current indicators reaffirm the continued contribution of this vital sector, which remains a cornerstone of the Sultanate’s economy. Average daily production of crude oil and condensates reached approximately one million barrels per day, with total annual output standing at 365.8 million barrels.

A total of 64 exploration and appraisal wells were drilled, including 47 oil wells and 17 gas wells, reflecting continued investment in strengthening reserves, which reached approximately 4.7 billion barrels of oil and condensates, in addition to 22.3 trillion cubic feet of natural gas.

Al Aufi noted that the gas sector continues to deliver positive performance indicators, with average daily production exceeding 151 million cubic meters, while liquefied natural gas exports surpassed 11 million metric tonnes, further reinforcing the Sultanate of Oman’s position as a reliable energy supplier.

The sector also continued to achieve tangible progress in Omanization rates, which reached nearly 91.6%, alongside efforts to strengthen local content through the localization of industries and services linked to the sector and support for small and medium-sized enterprises, thereby maximizing added value for the national economy.

He said: “In light of the sustained efforts and positive indicators achieved by the sector, we marked in 2025 the centennial anniversary of the signing of the first oil and gas exploration agreement — a historic milestone that signified the launch of this vital sector and laid the foundations for a longstanding development journey that has played a key role in building the national economy.”

Dr Saleh Ali Al Anboori, Director General of Exploration and Production of Oil & Gas, delivered a visual presentation highlighting the sector’s achievements and key milestones. He noted that the sector’s 2026 plan focuses on maintaining production levels and reserve stability, while further strengthening operational safety and promoting available concession areas through a new bid round covering additional blocks, in support of attracting investment and driving sector growth in the coming years.

He further explained that current indicators reflect continued progress in empowering national talent, with Omanization rates in operating companies reaching approximately 91.6%, alongside the provision of nearly 20,000 direct jobs in addition to thousands of indirect employment opportunities.

In the areas of safety and sustainability, the sector recorded outstanding performance through an integrated occupational health and safety system, achieving more than 503 million work hours without injuries and recording zero fatalities, reflecting a strong commitment to the highest safety standards.

The sector also continued its efforts to maximize In-Country Value (ICV), with spending on local content exceeding RO 11 billion over the past decade, alongside the launch of the “Majd” program to support small and medium-sized enterprises and localize energy-related industries.

He explained that approximately 1521 social responsibility projects were implemented over the past ten years, with total spending amounting to RO 85.6 million. The initiatives covered education, healthcare, youth empowerment, and community infrastructure development.

The number of operating companies reached 17 across 34 concession areas, including 12 companies that achieved commercial production in 18 concession areas. In addition, 4 concession agreements were signed, contributing to the maintenance of production levels and the continued development of resources.