FAQ

The challenges and obstacles that faces the Oil and Gas sector may be represented in several aspects such as, exploration, studies, operations, human resources and expenditure and they are as follows:

1. The exploration program of some companies and promotion of open areas are affected by the reduction of crude price worldwide.
2. Regardless of the continuous progression in the plans and techniques currently used in the exploration works, the risk of hydrocarbons absence, or in low non-profitable quantities is still possible in the exploration plans. This challenge can be faced though urging the companies to put an elaborate plan using all the available data for a better understanding of the reservoir during early stages and view other experiences and encourage researches in the educational and academic institutions in the Sultanate in coordination with The Research Council (previously).
3. Finding the best methods to deal with the combusted gas during the operations of examination and production. The national committee for gas combustion is established as one of the solutions to find opportunities for the reuse of gas combustion commercially in export and generating energy in the processing plant.
4. The reduction in the production capacity of the reservoir due to the decreasing pressure in the reservoir. Also the production of oil is accompanied by the presence of harmful gas like Hydrogen sulfide that affects the production pipes and lines in addition to the steady increase of water associated with production and its difficult disposition, at the same time the non-effective methods to stop the water production in the fields. Those challenges can be faced through increasing the enhanced oil pressure recovery and therefore maintain high production and sustainable level, and develop the exploration efforts for oil to support and compensate the lost stock with the effective methods for that. Regarding the harmful gas emissions associated with the production, there are efforts paid to find less costly methods to separate the harmful gas accompanying the production process. In order to reduce the cost of the disposal of water accompanying the production, the Ministry is working to urge the companies to find projects for the usage of water and held workshops to find latest techniques that serve the field.
5. The lack of qualified and experienced labor in the enhanced oil recovery and sour gas that contains H2S and N2. In addition to the difficulty in finding a balance between the availability of the specialized labor and the size of the available and establishing projects beside the weak performance of some contractors, that causes a delay in project completion that affect the general performance of the sector. This can be solved through setting qualifying plans and training programs to develop the employees’ abilities, and contributing and participating with the other entities to develop and prepare high-qualified contractors and improve the Omani companies.

1. The fast increase on the electricity demand due to the high economic and population growth in the Sultanate.
2. The availability of natural gas to generate electricity.
3. The delay of electricity fees collection.
4. The government support growth directed to the sector due to the increased demand upon electricity and decreased actual accredited tariffs of electricity.
5. Provision of the land areas required to build the assets of electricity network starting from generating electricity then its transmission and distribution.

1. The goal is set to produce 30% of the electricity production in the Sultanate through renewable energy by 2030.
2. The continuous review of the targeted rate of renewable energy to ensure the understanding of the latest updates in the renewable energy techniques and their prices.
3. Start implementing projects of electricity production from solar energy and wind power. The first project of electricity production is operated in 2019 with a capacity of 50 megawatt and there is a plan to operate the first biggest project to produce electricity from solar energy with a capacity of 500 megawatt by 2021.

The electricity production field through using the geothermal energy is one of the promising sources world wide. TheSultanate puts this source as one of the promising sources but this is still in its early stage.

The Sultanate represented by the Ministry of Energy and Minerals currently works to conduct primary studies in cooperation of Oil and Gas specialized companies to make experimental project to ensure the economic feasibility and train youths in this field to benefit from international expertise and MEM hopes to take an extra miles in these filed very soon.

Circulation No. (2/2013) issued by the board of directors to allocate a percentage of not less than (10%) from the total value of the purchases and different government tenders to small and medium enterprises and oblige the companies implementing big projects to allocate a percentage of not less than (10%) from the tender value to medium and small enterprises and giving the priority to the SMEs which registered its location in the region.

1. Increasing Omanisation and developing the skills of national workforce.
2. Increasing in-country spend on local goods and services.

It consists of the following seven elements with an overarching aim of maximising ICV in the oil & gas sector. These elements are molded into a standard ICV Plan, which is explained in the following FAQ.

1. Investments in Fixed Assets
2. Omanisation in the Work Force
3. Training of Omanis
4. Local Sourcing of Goods
5. Local Sourcing of Subcontracted Services
6. Development of National Suppliers
7. Development of National Training, Education and R&D Institutions