Oman’s Oil & Gas Industry is well Placed to Help Accelerate the Sultanate’s Energy Transition

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Oman’s Oil & Gas Industry is well Placed to Help Accelerate the Sultanate’s Energy Transition

Oman’s Top-200 Oil & Gas Stakeholders to Convene at the 6th Gulf Intelligence Oman Energy Forum on November 27th to Craft an Energy Transition Implementation Strategy.

Oman’s Oil & Gas Industry is well Placed to Help Accelerate the Sultanate’s Energy Transition

Image Attribute:  An Oman Oil's gas station in Al Batinah region of Northern Oman / Source: Ji-Elle, Wikimedia Commons

November 24, 2018 (Muscat, Oman) – The oil and gas industry of Oman, the largest non-OPEC crude producer in the Middle East, is well placed to accelerate the country’s transition to a more diversified economy utilizing all forms of future energies, such as solar and wind, because of its experience with integrating and leveraging the local in-country supply chain.

Oman’s top-200 officials and executives tasked with leading the Sultanate’s energy industry will meet on November 27th to discuss challenges and opportunities in implementing the energy transition to enable more sustainable economic and social growth. Several elements must be considered, including legacy and resource value chains for conventional fuels, to security and reliability of supply and sustainability for different stakeholder groups. This requires simple and aligned governance structures, a balanced mix of energy sources as well as clear cost allocation criteria.

“Oman has a wonderful opportunity to develop its renewable energy offering, thanks to its people, climate and burgeoning expertise. However, being successful in the country’s Energy Transition means creating the right ecosystem,” said Raoul Restucci, Managing Director, Petroleum Development Oman. “It involves the right governance, local skills development, and supply chains, enabling infrastructure and a progressive mindset aimed at achieving sustainable growth and prosperity. The ability to engage on these issues and ensure key building blocks are in place is increasingly critical for all stakeholders involved in the country’s energy industry.”

Oman has one of the world’s highest solar densities and has already made some significant steps towards its Energy Transition strategy in its goal to generate 10% of its energy from renewables by 2025. The move towards adopting energy transition strategies across the Gulf region is propelled by an urgency triggered by rapid consumption, which has grown by eight percent annually since 1972, compared to two percent for the world. Together, four of the six GCC countries (Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates) have less than one percent of the world’s population but account for more than five percent of global oil consumption.

PDO, Shell, OOC, OXY and all their peers in the oil and gas have been committed for decades to an in-country value policy that maximizes the procurement of local goods and services, as well as improving the capacity and capability of Omani people and companies in order to secure sustainable commercial benefits for the Sultanate.

In 2017, PDO awarded contracts worth more than US$5.19 billion to locally registered firms. The Company has broadened its support of domestic businesses through a wide-ranging series of initiatives, including technical assistance, ring-fencing the supply of locally manufactured/provided goods and services, the establishment of Omani repair facilities, in-country engineering services and a variety of new in-country manufacturing facilities. 

The 6th edition of the Oman Energy Forum will take place next week, in partnership with the Ministry of Oil & Gas, as part of an on-going commitment by government, industry and academic stakeholders to review, refresh and, where broadly and strategically agreed, implement key recommendations put forward in the Oman Energy Master Plan 2040 (2015), including a Transition to harvest a range of new renewable energy sources.