Oman’s Updated Energy Strategy: What It Means for Investment and Business Growth
MUSCAT, MAY 13 — The Ministry of Energy and Minerals has unveiled an updated strategic plan reaffirming its leading role in advancing Oman’s energy and minerals sectors. The plan focuses on optimizing natural resource use to support economic diversification and sustainable development.
For 2025, the strategy promotes a balanced approach centered on sustainable production, expanded exploration, and enhanced operational efficiency in the oil and gas industry. A bidding round for five concession areas is scheduled for 2026, alongside ongoing efforts to sustain production levels and stabilize reserves.
Minister of Energy and Minerals, Eng. Salim bin Nasser al Aufi, highlighted the sector’s ongoing strength, vital to Oman’s economy. Crude oil and condensate production averaged around one million barrels per day, totaling 365.8 million barrels annually. In 2025, 64 exploration and appraisal wells were drilled—47 oil and 17 gas—demonstrating continued investment in resource enhancement. Current reserves stand at approximately 4.7 billion barrels of oil and condensates, plus 22.3 trillion cubic feet of natural gas.
The gas sector also showed robust growth, with average daily production exceeding 151 million cubic meters and liquefied natural gas (LNG) exports surpassing 11 million metric tonnes, reinforcing Oman’s status as a reliable energy supplier. Omanisation rates in the sector have reached nearly 92%, supported by expanded local content through industry and service localization, as well as initiatives to empower small and medium enterprises (SMEs), thereby maximizing added value to the national economy.
In the minerals sector, four concession areas were offered in 2025, with bids currently under review. The sector manages 28 operational concession areas across 13 companies. The ministry plans to offer three concession areas and three public sites for investment in 2026, reflecting strong international investor confidence in Oman’s market.
The sector experienced a qualitative transformation in 2025, marking accelerated development as a key driver of economic diversification. This progress was underpinned by new agreements and mining concessions for copper, chromium, and salt, expected to increase future revenues and boost the sector’s GDP contribution. Growth is anticipated to accelerate with the commissioning of new concession areas.
Dr. Saleh bin Ali al Anbouri, Director General of Oil and Gas Exploration and Production, emphasized that the 2026 plan prioritizes maintaining production and stabilizing reserves while enhancing operational safety. The upcoming bidding round on concession areas aims to attract investment and support sector growth.
National talent empowerment remains a focus, with Omanisation rates in operating companies reaching approximately 91.6%, providing nearly 20,000 direct jobs and thousands more indirectly. The sector also achieved outstanding safety performance, logging over 503 million work hours without injuries or fatalities, underscoring a strong commitment to health and safety standards.
Local content spending has exceeded RO 11 billion over the past decade, supported by the “Majd” programme, which promotes SME development and localization of energy-related industries. Social responsibility initiatives totaled around 1,521 projects with expenditures of RO 85.6 million in the last ten years, covering education, health, youth empowerment, and community infrastructure.
The energy and minerals sectors currently comprise 17 operating companies across 34 concession areas, with 12 companies producing commercially in 18 areas. Multiple concession agreements were signed and extended, supporting resource development and production stability.
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Oman’s updated strategic plan for energy and minerals underscores robust sector growth and economic diversification opportunities, driven by sustained production, high Omanisation rates, and expanded concession offerings attracting international investment. Businesses should eye emerging opportunities in minerals and localized energy services, while investors consider the sector’s stability and government commitment to sustainability and operational safety as key factors for long-term returns. Smart entrepreneurs must leverage the growing support for SMEs and local content initiatives to maximize value from Oman’s expanding energy and minerals landscape.
