Natural gas is rising as a key catalyst to the growth of Oman’s economy, according to Central Bank of Oman’s (CBO) annual report released recently. According to the apex bank, large revenue being invested in Oman’s gas fields in the past few years have propelled the growth of the sultanate’s gas production.

The annual report figures show that natural gas production saw a jump of 12.5% to 43,750mn cubic metres in 2018. The total reserve of natural gas is estimated to be 25tn cubic feet (with 22 gas production fields) in the sultanate. Out of the total estimated reserves, Petroleum Development Oman (PDO) has the highest reserves with about 54%. BP Kazzan and Ghazeer have about 41% with the remaining 5% belonging to other companies.

According to the report, “Natural gas is emerging as a significant player in the Omani economy, especially with Khazzan-I coming into full stream.”  The report also added that Dolphin Energy Company contributed to gas availability in Oman with imports of 5.4mn cubic metres of gas per day.

The central bank also emphasised on the importance of new projects in the oil and gas industry, which are vital for maintain the current production level, “given the high attrition rate in this sector.”

“Therefore, Oman has been investing and collaborating with companies/operators for new projects in the oil and gas sector,” it added. On new projects, the CBO report noted that PDO’s Rabab Harweel Integrated and Yibal Khuff Project, both new projects, showed rapid progress in 2018.

“The second phase of Saih Nihayda and Kauther projects came on stream in 2018, while Occidental Oman signed a new exploration and production sharing agreement in Block 72. The second phase of the giant Khazzan field also made good progress and is expected to go on stream in 2021, delivering an additional 0.5bn cubic feet of gas per day,” the report added.

CC Energy Development completed engineering, procurement, construction and start-up Ulfa phase 2 central processing facility with capacity of 11,000 barrels per day and according to the CBO report, Ulfa phase 3 will further expand the central processing facility to a capacity of 20,000 barrels of oil per day.