Oman reached peak oil production in 2000/2001 from a
large number of fields across a broad swathe of acreage running parallel
to its southern coast. Over the next decade it is forecast that output
will stay at plateau, slightly lower than that peak, with numerous
remaining marginal opportunities just managing to offset decline in the
The country is now concentrating on developing its large gas reserves,
both for local use and for export as LNG, and strong growth is forecast.
Oman has limited gas and condensate production offshore of the Musandam
peninsula near the Iranian border. Small growth in output is forecast
here as fields and satellites are developed for a local gas market.
Omani oil consumption is growing only slowly and is
unlikely to change significantly whilst exports remain flat.
However, gas consumption is growing rapidly as are exports from the
Omani LNG plant, which began operating in 2000 and now sells in all
importing regions. Piped gas is also sold to the United Arab Emirates.