Oman Oil and Gas Downstream Market - 2023-2030

Oman Oil and Gas Downstream Market - 2023-2030

The Oman Oil and Gas Downstream Market reached 2.6 million barrels per day in 2022 and is expected to reach 2.8 million barrels per day by 2030, growing with a CAGR of 1.13% during the forecast period 2023-2030.

As Oman is actively pursuing downstream investment and initiatives to improve its refining and petrochemical capabilities, the oil and gas downstream market is anticipated to expand positively. It involves the construction of new refineries, the enlargement of the existing ones, the development of downstream industries, and the establishment of industrial clusters.

The Omani government has put policies and strategies in place to encourage downstream operations, draw in investment, and boost the development of the downstream oil and gas industry in Oman. In Oman, for instance, the government budget for 2022 projected revenues of US$ 27.6 billion, based on average oil prices of US$ 50 per barrel, with oil and gas contributing 42% and 25% of total revenues, respectively.

Market Dynamics

Growing Investments in Downstream Sector

The oil and gas industry in Oman continues to receive more investments. The country's economy is being formed by the investments made by regional oil and gas companies. In order to represent the government's stake in PDO and obtain money for projects, Oman formed Energy Development Oman (EDO). To raise $3 billion in debt to finance Petroleum Development Oman (PDO) and Oman's gas operations, EDO approached a number of foreign banks in August 2021.

Duqm Refinery and Petrochemical Industries Company (DRPIC) announced in November 2021 that it expected to start operating its Duqm refinery in southern Oman in the first quarter of 2023. The Omani government and Kuwait Petroleum International (KPI) are joint ventures in the project. The project has a US$ 8 billion investment cost and a 230,000 barrels per day (bpd) processing capability.

Rising Number of Refineries

Oman enhances its energy security by minimizing its dependency on imported refined petroleum products by bringing more refineries into service. By ensuring a consistent supply of fuel for home use, the enhanced domestic refining capacity reduces the dangers brought on by unpredictable global oil markets and unpredictable geopolitical circumstances.

For instance, the OQ Liquified Petroleum Gas (OQ LPG) facility, which cost a total of US$ 826 million to build, was officially commissioned in May 2021, according to the Omani National Petroleum Investment Company (OQ). Additionally, the Engineering, Procurement and Construction (EPC) contract for the bitumen plant to be situated in Sohar Industrial Port was granted to Oman's Sohar Asphalt LLC in August 2020. The deal was signed for US$ 408 million and it is expected to be commissioned by the end of 2023.

COVID-19 Impact Analysis

Oman's economy continues to grow as a result of the rising price of oil. The COVID-19 epidemic has an impact on the global economy, including the price of energy, travel patterns, and major events. Given that Oman is an oil-rich country, the majority of its GDP is dependent on oil and oil-related goods.

High oil prices are expected to result in fiscal and external surpluses and encourage higher growth over the medium term, as are the authorities' Medium Term Fiscal Plan [MTFP] and the steady implementation of structural changes under Oman Vision 2040. In 2021, the central government debt was 62.9% of GDP and in 2022, it is projected to be roughly 44% of GDP.

Russia-Ukraine War Impact Analysis

Market stability and investor confidence have been affected by the conflict between Russia and Ukraine, which has increased geopolitical risk and uncertainty. 2020 saw a further decline in oil revenues as a result of a huge wave of dropping global demand brought on by the pandemic. The agreement of OPEC+ members to begin production cuts in early April 2020 was one of the key influencing factors in the global oil and gas market in 2020.

The New Agreement plans to cut global supply by 10% from May to July, in response to the sharp decline in demand expected for 2020. Due to Oman's budget's break-even point at approximately US$ 87 per barrel, sub-US$ 30 oil and the reduced production quota under the April OPEC+ agreement suggested a huge budget deficit of almost 17% in 2020.

AI Impact Analysis

Oil and gas industry processes can be made more effective and of higher quality using solutions based on artificial intelligence (AI). Before making choices, the oil and gas industry can use AI to evaluate the potential impacts of new developments or assess whether a particular operation would be environmentally hazardous. Oilfield suppliers in Oman have started collaborating with companies to produce the needed AI in order to provide AI innovation to the oil and gas industry.

For instance, Oman's national petroleum investment company OQ and Phazero, a regional computer engineering firm, collaborated in 2020 to create artificial intelligence software that will detect component problems in the nation's refineries before they happen. The project to design the new software has the potential of resulting in considerable cost savings for OQ and allow OQ to focus its maintenance efforts on those components that are more likely to break down and result in reduced downtime periods.

Segment Analysis

Oman oil and gas downstream market is segmented based on type, product and end-user.

The Maximum Value Extraction from Crude Oil through Refining

The refining segment, which is the largest, is projected to account for about 1/3rd of Oman oil and gas downstream market in 2022. Oman can maximize the value of its crude oil resources through refining. Oman is able to market the higher-value goods both domestically and abroad by refining crude oil into refined petroleum goods like petrol, diesel, jet fuel and petrochemical feedstocks. In Oman, refining serves as a catalyst for the growth of the downstream sector.

By increasing downstream operations, Oman lowers its reliance on crude oil exports alone and builds a more balanced economy that places more emphasis on sectors and products with added value. It promotes the development of related sectors such as lubricants production, retail fueling, storage and distribution and other value-added operations. It boosts Oman’s oil and gas industry's economic worth and revenue, promoting the market expansion.

Competitive Landscape

The major global players include Royal Dutch Shell PLC, Petroleum Development Oman, Kuwait Petroleum International, Total S.A., Oman Oil Marketing Company SAOG, Oman LNG, Partex Oil and Gas orPIC, BP Plc and Occidental Petroleum.

Why Purchase the Report?
• To visualize the Oman oil and gas downstream market segmentation based on product, application and end-user, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of oil and gas downstream market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

Oman oil and gas downstream market report would provide approximately 39 tables, 36 figures and 192 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies