Oman's LNG exports will increase as oil plateaus

Significance

Previously, in January, the energy ministry announced it was offering three new oil and gas concessions. Muscat wants to engage private companies in efforts to unearth fresh reserves of its rapidly depleting crude oil, while also sustaining existing production rates at state-owned concessions and expanding the gas sector.

Impacts

• Foreign oil investment will focus on near-field oil opportunities and tight gas.
• Offshore exploration will be de-prioritised, owing to high costs and low prospects.
• The government will sell some corporate and physical hydrocarbons assets to alleviate renewed fiscal strains.