Oman Advances Low-Carbon Strategy for Oil and Gas Sector

Oman sets 2050 carbon neutrality goal while maintaining oil production

Oman has committed to reaching net zero emissions by 2050 while continuing to produce oil and gas. The strategy, announced in November 2022, attempts to reconcile climate goals with the country’s economic dependence on hydrocarbon exports. For UK businesses with Gulf supply chains or energy procurement contracts, this policy shift signals how major producers plan to respond to tightening carbon regulations without abandoning fossil fuel extraction.

The approach centres on decarbonising existing oil and gas operations rather than phasing them out. Oman’s government has outlined plans to cut emissions by 97 million tonnes of CO2 equivalent by 2050 compared to 2021 levels. The pathway targets a 6% reduction by 2030, 54% by 2040, and 92% by 2050. These figures come from the National Strategy for an Orderly Transition to Net Zero, which pairs sector-by-sector emission cuts with major investment in renewables, hydrogen production, and carbon capture technologies.

For businesses tracking how energy-exporting nations are adapting to climate policy, Oman’s model offers a clear example of what some analysts call a