Updated energy strategy targets production boost

MUSCAT, MAY 13
The Ministry of Energy and Minerals presented an updated strategic plan at a media briefing on Wednesday, reaffirming its commitment to its pivotal role in leading and developing the energy and minerals sectors. This strategy aims to optimise the utilisation of natural resources and support economic diversification and sustainable development.
The plan outlines a balanced approach that combines sustainable production, expanded exploration and enhanced operational efficiency in the oil and gas sector during 2025. In 2026, a bidding round was announced for five concession areas for investment, while efforts continued to maintain production levels and stabilise reserves.
Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, confirmed that indicators point to the continued strength of this vital sector, which underpins the Sultanate of Oman's economy. Average daily production of crude oil and condensates reached approximately one million barrels, with total annual production reaching 365.8 million barrels. Sixty-four exploration and appraisal wells were drilled, including 47 oil wells and 17 gas wells, reflecting continued investment in enhancing reserves, which now stand at approximately 4.7 billion barrels of oil and condensates, in addition to 22.3 trillion cubic feet of natural gas.
The gas sector continues to show positive indicators, with average daily production exceeding 151 million cubic meters and liquefied natural gas (LNG) exports surpassing 11 million metric tonnes, further solidifying Oman's position as a reliable energy supplier. The sector also continues to make significant progress in Omanisation rates, reaching nearly 92%, alongside strengthening local content through the localisation of industries and services related to the sector and supporting small and medium enterprises (SMEs), thereby maximising added value to the national economy.
In the minerals sector, four concession areas were offered in 2025 and bids are currently being evaluated. There are also 28 operational concession areas, managed by 13 companies. We will further enhance our progress in 2026 by offering three concession areas and three public sites for investment, reflecting the growing confidence of international investors and partners in the Omani market.
This comes alongside a qualitative shift witnessed by the sector in 2025, reflecting its accelerated development as a promising engine for economic diversification. This shift was driven by the signing of several agreements and mining concession areas for copper, chromium and salt, which will boost future revenues and increase the sector's contribution to GDP. Accelerated growth is expected in the coming years, fuelled by the commissioning of new concession areas.
“The sector's focus during the 2026 plan is on maintaining production levels and stabilising reserves, while also enhancing operational safety. The plan also includes marketing available concession areas through a bidding round that includes new areas, thereby attracting investments and bolstering the sector's growth in the coming years”, said Dr Saleh bin Ali al Anbouri, Director General of the Directorate General of Oil and Gas Exploration and Production.
He added too that the indicators reinforce the empowerment of national talent, with Omanisation rates in operating companies reaching approximately 91.6%, in addition to providing nearly 20,000 direct job opportunities, as well as thousands of indirect ones.
Outstanding performance in safety and sustainability was also recorded through an integrated occupational health and safety system, achieving over 503 million work hours without injuries and zero fatalities, reflecting a high commitment to safety standards. The sector continued its efforts to maximise local added value, with spending on local content exceeding RO 11 billion over the past decade, in addition to launching the 'Majd' programme to support small and medium enterprises and localise energy-related industries.
Meanwhile, the number of social responsibility projects implemented reached approximately 1,521 with a total expenditure of RO 85.6 million over the past ten years, covering the fields of education, health, youth empowerment and community infrastructure. The number of operating companies reached 17, working across 34 concession areas. Of these, 12 companies achieved commercial production in 18 areas. Several concession agreements were also signed and extended, contributing to maintaining production levels and developing resources.