The Sultanate of Oman is taking practical steps to increase liquefied natural gas (LNG) production as part of its plans to boost export capacity and bolster the country’s financial resources. This is achieved through the implementation of the first expansion project in this sector in more than two decades. The new project focuses on exploiting Block 61, one of the largest gas fields in the country, and is being developed by international companies, including BP.
According to statements by Jaber Al-Naamani, Chief Financial Officer of OQ Exploration and Production, discussions are underway with strategic partners to review the field’s development plan, with the aim of supplying a fourth production line in the city of Sur with the necessary gas to operate it. This line’s production capacity is expected to reach 3.8 million tons per year and will be located on the Gulf of Oman coast. Al-Naamani indicated that the project relies on private investments, including production operations in the field and the construction of an export plant, with the government potentially announcing the commencement of construction work next year if arrangements are completed. This project represents a qualitative addition to the Omani gas sector. If implemented, it will increase export capacity by approximately one-third, strengthening the Sultanate’s presence in the liquefied natural gas (LNG) market. This move comes as Muscat seeks to diversify its sources of income and invest its gas resources to support its budget, especially given the financial challenges it faces.
The ownership structure of Block 61 includes several major partners: BP of Britain with a 40% stake, OQ Exploration and Production with a 30% stake, PTT of Thailand with a 20% stake, and Malaysia’s Petronas with a 10% stake.
The Omani move coincides with a wave of regional expansion in LNG exports. Gulf countries, led by Qatar and Abu Dhabi, are working to increase their production capacities, amid expectations that global demand for this type of fuel will continue for years to come, despite growing international efforts to transition to low-carbon energy sources. Observers believe that the success of the Omani project depends on attracting foreign investment and effective partnerships, especially since the government does not plan to finance it from its own resources. This makes the participation of international companies a crucial factor in turning this plan into reality.
