Business Gateways International
Oman’s Oil & Gas Economy
An Overview of Existing Business Opportunities
Introduction:
Oman, strategically located at the tip of the Arabian Peninsula, is a prime member of the GCC (Gulf Cooperative Council). The Government of Oman through the Ministry of Oil and Gas offers an excellent business opportunity for manufacturers, suppliers, vendors and multifarious service providers across the business spectrum to partake in its 180 USD Billion Oil and Gas industry procurement action.
Since 1967, the economy of Oman has largely been dependant on Oil leading to Oman growing to be a thriving economy with futuristic cities complete with state of the art infrastructure, transportation, healthcare and education & business systems.
Oman is also naturally endowed with large natural gas reserves that are well over 18 trillion cubic meters out of which 44% of the available reserves are tied up to long-term contracts, 22% for oil extraction and 34% is used for domestic & industrial consumption. Most of the gas reserves are now very deep and Oman is looking out for ways and means to exploit the gas economically.
Oman also has strategic gas supply related business partnerships with neighboring states such as Qatar to augment existing supplies for long-term contracts as well as to continue to drive the Sultanate’s economy and industrial growth.
Recently Oman has started investing in EOR techniques (enhanced oil recovery, known as ‘fracking’) to further exploit deep oil reserves that were hitherto inaccessible and to possibly achieve 1 million barrels a day over the next few years.
On the solar energy front, Petroleum Development Oman (PDO), the largest oil & gas producer in Oman, has partnered along with Glass Point Solar an established leader in solar enhanced oil recovery (EOR) to build a 1,021 megawatt solar thermal facility in South Oman that would be utilized to produce steam to power thermal EOR and extract heavy and viscous oil from the Amal oilfield. On completion, this project could lay claim to being one of the world’s largest solar plant.
Current Sub-Sector Best Prospects (more services/products to be added)
Drills, drilling services, hydraulic fracturing technology and services, equipment for extracting oil, devices for sand removal for drilling rods, boilers and crude oil, separators, burners in mobile tanks, heavy crude heating pipelines, systems for treatment of water, quality of inspection, steam injection, other enhanced oil recovery systems and technologies, gas plants, pipelines, flow lines, well pads, wells, compressors, frack spreads and rigs, infrastructure and operations support.
Oman Current Oil & Gas Opportunities
The current Oman Oil & Gas Industry projects are estimated to be to the tune of USD 180 billion. The following key developments provide excellent opportunities for goods & services business with the Oman Oil & Gas Industry.
Ø Aging Oil & Gas Infrastructure: Oman has several older oil and gas fields and quite a significant portion of the infrastructure is aging. Replacement of pumps, wellheads, pipelines and related equipment provides good business opportunities.
Ø Complex Geology & Offshore Exploration: Oman’s oil & gas industry needs advanced technology such as 3-D seismic analysis to facilitate exploration of gas and oil blocks with complex geology as well as for offshore exploration that has been initiated recently.
Ø Recognition & Need for Advanced Technology: Omani Operators are aware and recognize the need for automated systems & technology to remotely monitor oil & gas wells that would ultimately enable cutting down on labor costs while improving efficiency. PDO has already initiated the use of unmanned aerial vehicles (UAV) to help monitor its oilfields, for example.
Ø Environmental Protection: Oman’s environmental protection authorities are keen to implement advanced environmental monitoring systems that would help monitor and control on-shore leaks.
Ø New Projects: To capitalize on its geographic location Oman operators have recently undertaken new refinery and petrochemical projects at Duqm and Sohar. The largest project is the Liwa Plastics Industrial Complex that has been undertaken by ORPIC.
Ø LNG Sector: The Government of Oman is currently investing heavily in the liquified natural gas (LNG) sector as Oman is richly endowed with 18 trillion cubic meters of proven natural gas reserves. There is currently a significant demand for pipelines, pressure limiting equipment and valve stations for the Gas Transportation Systems (GTS)
CONCLUSION:
To conclude with an example for existing opportunities, the Ministry of Oil & Gas has recently awarded a 15 year, $15 billion concession rights to British Petroleum (BP) to develop the Khazzan gas field and deliver an estimated 1 billion cubic feet per day on commissioning of the project.
This flagship project is estimated to require more than 300 horizontal wells as well as 600 km of flow lines.
JSRS : In order to create a very conducive business environment that would facilitate mutually beneficial business partnerships with all the 19 Oil & Gas Operators & National & International Suppliers, the Government of Oman’s Ministry of Oil & Gas partnering with Business Gateways International has created a unique hybrid system called the JSRS that combines all features required for Supply Chain Management, Vendor / Supplier Validation and Manpower Resourcing.
Business Gateways is Government of Oman’s Ministry of Oil & Gas strategic technology partner for the development and implementation of the JSRS. BGI is headquartered in Oman with offices in India, USA, Malaysia & China
Web Resources
Ministry of Oil and Gas
Ministry of Commerce and Industry
https://www.moci.gov.
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