Oman’s Crude Oil Reserves Decline 2.8%: Implications for Energy Investors and Business Growth
MUSCAT: At the end of 2024, Oman reported crude oil and condensate reserves totaling approximately 4.825 billion barrels, reflecting a 2.8% decline from the previous year. In contrast, natural gas reserves increased to 23.3 trillion cubic feet (TCF), up from around 23 TCF in 2023.
These statistics were released in the Ministry of Energy and Minerals’ 2024 Annual Report. The report highlighted that Petroleum Development Oman (PDO), the country’s largest oil and gas producer, represented about 62% of the total crude oil and condensate reserves for the year.
Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals, emphasized the critical role of hydrocarbons in Oman’s national economy, stating: “Despite global challenges in the energy market—such as price volatility and changing demand—we have successfully maintained stable production levels in the oil and gas sector through strategic policies.” The average daily production of crude oil and condensates was reported at 992,600 barrels, with total exports near 308.4 million barrels.
He also noted that the average price for Omani crude reached USD 80.79 per barrel. In the natural gas sector, average daily production came to 149.2 million cubic meters, which included 117.5 million cubic meters of non-associated gas and 31.7 million cubic meters of associated gas. Additionally, 12 million tonnes of liquefied natural gas (LNG) were exported through 181 shipments, reflecting the sector’s efficiency and resilience.
By the end of 2024, Oman had 475 producing fields, consisting of 400 oil fields and 75 gas fields. The report indicated that 73 exploration and appraisal wells were drilled last year, with 54 targeting oil and 19 targeting gas.
Al Aufi highlighted that 2024 was characterized by ongoing advancements in the oil and gas sectors, stating, “Our vision remains focused on a diversified economic future, enhanced local value, and developing Omani talent at all levels. Despite global challenges, we have managed to maintain stable production levels due to our strategic foresight.”
Notable progress was also seen in the refining and petrochemical sector, with 122 million barrels of petroleum products—such as gas oil, jet fuel, and naphtha—exported, while imports decreased to around 2 million barrels, demonstrating enhanced self-sufficiency and value chain efficiency.
On the green hydrogen front, Al Aufi described 2024 as a year of “pioneering milestones” for Oman, aimed at establishing the country as a regional hub for renewable energy and green hydrogen. This initiative was marked by the signing of eight major hydrogen production agreements—five in Al Wusta Governorate and three in Dhofar.
Renewable energy sources, primarily solar and wind, accounted for approximately 9% of the country’s total power generation in 2024. This growing share highlights the Ministry’s commitment to diversifying the national energy mix and advancing low-carbon solutions. The contribution from renewables is expected to rise with the commissioning of the Manah 1 and Manah 2 solar farms, boasting a combined capacity of 1,000 MW. Furthermore, the upcoming North Oman Solar project and the Riyah 1 and 2 wind farms, scheduled for completion by 2026, are projected to reduce CO₂ emissions by over 1.4 million tonnes annually.
Special Analysis by Omanet | Navigate Oman’s Market
The recent decline in oil reserves indicates a critical need for businesses in Oman to strategically pivot towards sustainable and diversified energy sources, particularly in renewables and green hydrogen. This presents both opportunities and risks; investors should capitalize on the growing green sector while being mindful of volatility in traditional hydrocarbons. Smart entrepreneurs should focus on innovation in energy technologies and partnerships that enhance in-country capabilities, aligning with Oman’s vision for a robust, diversified economy.
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