Oman Oil and Gas Upstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The market is segmented by Location of Deployment (Onshore and Offshore)
ABOUT THIS REPORT
Scope of the report
Key Market Trends
TABLE OF CONTENTS
2016 - 2026
Need a report that reflects how COVID-19 has impacted this market and its growth?
The Oman oil and gas upstream market is expected to grow at a CAGR of more than 5% during the forecast period. Factors such as supportive government policies, efforts to grow the offshore sector coupled with upcoming projects, are expected to drive the market studied. However, the high capital investment required, coupled with a lack of financing due to a global economic slowdown in the event of the COVID-19 outbreak, is expected to hinder the growth of the market in the coming years.
The Onshore segment held the major market share in 2019, and it is likely to dominate the market during the forecast period.
High number of discoveries in recent years and the continued exploration activities are expected to provide a significant opportunity for the market players in the country’s oil and gas industry.
Increased exploration activities in the country is expected to be the major driver for Oman Oil and Gas Upstream Market.
Scope of the report
The Oman oil and gas upstream market report include:
Report scope can be customized per your requirements. Click here.
Key Market Trends
Onshore Sector to Dominate the Market
Onshore sector has dominated the Oman oil and gas market in recent years and is expected to continue to do so during the forecast period too.
The country majority of the oil and gas production comes from onshore oil and gas fields. Offshore oil and gas exploration and production activities in the country are relatively very recent and will take significant time to develop.
The offshore sector in the country is expected to take a long tie to develop due to the high CAPEX nature of offshore projects. Expenditure in the offshore projects is expected to reduce significantly due to the global economic slowdown caused by the outbreak of COVID-19.
Decreased investments in offshore projects and the majority of the oil and gas production coming from onshore fields are the major drivers of the onshore sector.
Owing to several major gas discoveries in recent years, the Onshore sector is expected to dominate the market during the forecast period.
To understand key trends, Download Sample Report
Increased Exploration Activities to Drive the Market
The Government of Oman has adopted a strategic policy to increase exploration activities in the country. In December 2018, Oman’s Ministry of Oil and Gas signed two oil and gas exploration contracts with Occidental Oman, worth USD 58 million, paving the way for more than 10 offshore drilling wells to be set up in the country.
The deals grant exploration rights for two concessions, one of which is Block 65 that covers 1,230 km² and may hold oil. The second one, Block 51, spans 10,133 km² and may have gas reserves. Occidental Oman is planning to invest USD 32 million in Block 65, while Oman Oil Company Exploration and Production is expected to invest USD 12 million into the concession block. Nine drilling wells are expected to be set up in two phases over a six-year period. Meanwhile, USD 14 million is expected to be invested by Occidental Oman in Block 51 in two phases, over a six-year period, during which it plans to drill five exploration wells to look for gas assets.
In April 2019, Total SA and Oman’s Ministry of Oil and Gas signed heads of agreements to award the French company an exploration license, covering Block 12 in Central Oman. The Block 12 program may include seismic data acquisition and drilling commitments, with the first well due in 2020.
In July 2019, Oman's Ministry of Oil and Gas signed a gas exploration agreement with Eni SpA and BP Oman for concession block 77. The agreement involves seismic studies and the drilling of exploration wells, and it is expected to lead to the discovery of new oil fields. The agreement offers exploration rights and development of an onshore area of 2.73 sq. Km. in central Oman. During the exploration period, Eni may be the operator with a 50% stake, while BP is expected to hold the rest.
All of the above factors combined are expected to help drive the Oman oil and gas market during the forecast period
To understand geography trends, Download Sample Report.
The Oman oil and gas upstream market is fragmented. Some of the key players are BP Plc, Royal Dutch Shell, Oman Oil Marketing Company SAOC, Total SA, Eni Spa, among others.