In 2023, Oman’s Ministry of Energy and Minerals signed five agreements related to the mining sector, focusing on the exploration of potash and nickel ores in various locations. The total production of mineral raw materials that year was about 70.4 million tonnes, indicating a decrease of 7 percent compared to 2022. Despite this, the amount of mineral raw materials sold increased by around 3 million tonnes. The decrease in production was attributed to delays in mining companies submitting their monthly production reports. In 2023, a total of 8 mining licenses were issued, along with 12 exploration licenses.
The Ministry of Energy and Minerals also reported on the progress of renewable energy projects in Oman. The country now has seven main regions for renewable energy, with 6 agreements signed to produce green hydrogen in specific regions. The total production of electrical energy in 2023 reached about 44.4 terawatt-hours, marking a 6.4 percent increase from the previous year. Additionally, nearly 2 terawatt-hours of electrical energy were produced from renewable sources, representing a 5 percent increase from the previous year.
In terms of oil and gas exploration and production, companies in Oman drilled, tested, and evaluated a total of 63 exploratory and appraisal wells for oil and 15 for gas in 2023. The results of petro-physical analysis and well productivity tests were positive for many wells, leading to the addition of new oil and gas reserves. By the end of 2023, Oman’s expected reserves of crude oil and oil condensates amounted to about 4,971 million barrels, a 1 percent increase from 2022. However, the expected natural gas reserves decreased by 5 percent to about 23 trillion cubic feet.
Oman’s oil exports in 2023 totaled about 310 million barrels, with China being the largest importer, accounting for 92 percent of the imports. The average daily production of crude oil and oil condensates in Oman in 2023 was 1.05 million barrels, a slight decrease of 1.5 percent from the previous year. The country’s average production of natural gas also increased by 4 percent in 2023, reaching about 142.5 million cubic meters per day.
Despite the positive developments in the energy and mining sectors, the average price of Omani crude oil decreased by 14 percent in 2023, averaging about $82.3 per barrel. The price of a barrel of Omani oil fluctuated throughout the year, reaching a minimum of $74.8 per barrel in August and a maximum of $92.8 per barrel in November. Overall, Oman’s energy and minerals sector showed steady growth and development in 2023, with promising prospects for the future.
