0.625
%
Positive
13
mm boe
57
%
Despite a benign operating environment for O&G companies, the economy remains highly leveraged to O&G revenues. In response to fast growth in household indebtedness, the Central Bank reduced the ceiling on personal interest loans from 8% to 7%, lowered mortgage rates, capped the%age of consumer loans at 50% of borrower’s salaries for personal loans and 60% for housing loans, and limited maximum repayment terms to 10 and 25 years respectively. Nevertheless, we believe that the O&G sector will remain key to the country's future revenues, hence our Positive outlook.
May 30, 2024
Middle East
mm bbl
bcf
Middle East, bordering the Arabian Sea, Gulf of Oman, and Persian Gulf, between Yemen and the UAE.
Multiple (PSC/Concession)
The fiscal regime that applies in Oman to the oil and gas exploration and production industry sector consists of corporate income tax (CIT) in accordance with the production sharing contract ("PSC") arrangement.
Oman is taking steps towards making the country a more attractive destination for foreign investment, focusing on its increasing financial problems, reduction of its dependency on oil, and openning up key sectors to private sector competition and foreign investment, gaining renewed impetus post the dual crises of the oil price collapse and COVID-19 pandemic. Oman's geographic has straegic importance, being located outside the Arabian Gulf and Strait of Hormuz, with proximity to shipping lanes carrying a significant share of the world’s maritime commercial traffic and access to larger regional markets.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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