Oman to Bolster Energy, Minerals Contributions to GDP

The Ministry of Energy and Minerals is planning to enhance with the support of technology the contribution of the energy and mineral sectors to the gross domestic product (GDP), and add to the national income of Oman, a report said.

It said that it has achieved strong results in 2023 and wants to supplement the state’s general budget by using all possible means to boost production at lower cost using the latest technology, Times of Oman said.

Engineer Salem bin Nasser Al-Awfi, Minister of Energy and Minerals, stressed that the ministry is working to harness all capabilities and resources to enhance its role in developing the energy and minerals sectors, and use advanced technology to support the production of crude oil and oil condensates.

The minister further explained that the Ministry of Energy and Minerals continued its efforts in the field of localization of industries in 2023. A factory for manufacturing chemicals within the Sultanate of Oman has been certified and approved in accordance with the required standards and specifications, which will contribute directly to enhancing the local value, in addition to achieving a reduction in operational expenses.

The first well drilling rig manufactured in Oman with an electronic operation feature was also completed, as it was manufactured using the latest technologies to ensure safe, efficient and sustainable drilling operations.

He pointed out that in line with the government’s directions in supporting the role of small and medium enterprises (SMEs) to contribute to achieving economic and social development, the total spending on small and medium enterprises in the oil and gas sectors amounted to about 16% of the total value of purchases and tenders. Regarding the important projects that were started in 2023, Engineer Salem bin Nasser Al-Awfi pointed to the Al-Ghaisin Mine Copper Mining Project in the Wilayat of Al-Khaboura.

It is one of the most important and promising projects in copper mining that will contribute to enhancing economic diversification in the Sultanate of Oman. It relies on modern, environmentally friendly underground mining techniques and its reserve is estimated at more than six million tons with an average concentration of 2.04% copper ore.

Also, a solar energy station was opened in the Wilayat of Sur to produce renewable energy for the Sur water desalination plant. He stressed that the ministry has made tangible efforts in the field of social responsibility with its partners as three national projects were supported by three different companies at a cost of OMR2.5 million (US$6.5 million).