The Oman energy sector has been reformed recently, particularly in the upstream arena, with many new & existing concessions being made available to prospective bidders. Petroleum Development Oman (PDO) have the largest and most diversified operations that produce hydrocarbons from approximately one hundred fields which together exhibit a huge array of drilling & production complexities and challenges.
Occidental and their partners were awarded the Block 53 Mukhaizna heavy oil field in 2005 and more recently the adjacent Block 54. Occidental also operate blocks 9 & 27 which contain the more mature Safah & Wadi Latham fields.
Other recent entrants include Oman Oil Co for the Abu Batabul field in Block 60 and BP in Block 61 in approximately 2,800 square kilometers in central Oman including the Khazzan and Makarem tight gas reservoirs.
Other international operators include PTTEP, Novus, Encana, Maersk, Circle Oil, Sinopec, Tethys Oil, Rak Petroleum, Indago Petroleum, Hunt, MOL & Daleel. Currently there are no offshore producing fields however Reliance, Hunt, Novus and Circle Oil all have acreage. In any year up to 400-450 new wells are drilled.
For downstream activities the Sohar area in the north has become a major hub for energy intensive industries. These include a large manufacturing capability for polyethylene, polypropylene, methanol, fertilizers and aluminum, as well as a refinery. Much of the energy for these projects is supplied from gas, not only from, Oman but also from other GCC countries. Oman also has a prominent LNG manufacturing capability located at Sur which is supplied primarily from gas fields in central Oman.