Nearly all of Oman’s oil production comes from the Oman Basin, which spans most of the country. The country’s crude oil and lease condensate production ranks 7th in the Middle East and 20th in the world, although Oman is the largest oil producer in the Middle East that is not a member of the Organization of Petroleum Exporting Countries (OPEC). Since 2007, Oman’s average annual crude oil production plus lease condensate has risen from 710K barrels per day (bbl/d) to an averaging of 945K bbl/d (2013).
Several recent developments could contribute to the maintenance of future oil production growth in Oman, the most notable of which include Circle Oil’s announcement of Block 52 with its 7B bbl oil in place and Occidental Petroleum’s Block 53, which could produce roughly 44M bbl each year (in 2005, Occidental Petroleum implemented one of the world’s largest to date steam flood projects in Oman. Occidental Petroleum has the largest presence of any foreign firm in Oman and is the country’s largest independent oil producer. Other major players with interests in Oman include Shell, Total, Partex, BP, CNPC, KoGas, and Repsol).
Improved Enhanced Oil Recovery (EOR) techniques have greatly assisted the drive towards this production turnaround, although the country is also experiencing some additional production gains as a result of recent discoveries. The Omani Government aims to keep production near its current level for foreseeable future by continuing to apply EOR techniques and their associated costs management.
Petroleum Development Oman (PDO, with respective shareholders: Omani Government 60%, Shell 34%, Total 4%, Partex 2%) holds the vast majority of Oman’s oil reserves and is responsible for more than 70% of the country’s crude oil production, whereas the Oman Oil Company (OOC, 100% Omani Government owned) is responsible for energy investments both in and outside Oman. The Oman Oil Refineries and Petroleum Industries Company (ORPIC) controls the country’s refining sector and owns both of Oman’s operating refineries.