A person holding a Nikon camera points it towards a Shell gas station on a clear day.

Oil & Pipelines in Oman

Oil & Pipelines in Oman

Written by: Philip Eichkorn Last updated at: May 21, 2025

When the first cargo ship loaded with oil set sail from Oman in 1967 and headed out into the world, a new era began for the country on the Persian Gulf. Once a trading superpower that traded with China and maintained its own trading posts in Africa, Oman had become a simple and impoverished desert state where people lived off agriculture and livestock farming in the few arable areas. There were hardly any other sources of income, leaving the population poor and largely uneducated. The vast land was barely governable, leading to regular tribal conflicts and sometimes civil war-like conditions. However, with the revenues from the oil industry and the takeover of power by the equally far-sighted and prudent Sultan Qaboos Ibn Said much changed.

Expansion of the oil business

Oil and gas quickly became the main source of income for the Sultanate. Oman is one of the smaller oil suppliers in the world. It produces only about 1/10 of what is extracted in Saudi Arabia, for example. Nevertheless, the revenues flowed in and were utilized wisely.

First, Sultan Qaboos created a pipeline network spanning about 7,000 kilometers that connected Oman's oil fields to the long-time only major oil port of the country, Mina al-Fahal. Here, the oil was loaded onto ships and then sent to trading partner countries, preferably the USA, China, and Japan. Since 1982, there has also been a refinery in Mina al-Fahal, allowing the oil to be sold not only as crude oil but also in processed forms. Once the necessary network for oil trade was established and started running, the Sultan could also allocate funds for other important areas such as education and healthcare, fully aware that revenues from oil and gas trade would continue to flow.

Ports as an investment for the future

There have always been small port towns in Oman. Just the fishing villages along the coast gradually developed into port towns where, alongside ferries and smaller boats, cruise ships from various shipping lines increasingly docked.

None of these smaller ports reached the size of a true global trading port in recent decades, until Sultan Qaboos took on a new project in 2013: the port of Duqm. At first glance, this endeavor hardly seemed worthwhile. Duqm was not a natural seaport, so it required considerable efforts to build a seaport here capable of accommodating 70,000 residents in the city. However, due to the political situation, the expansion of the port became a wise strategy. The port of Mina al-Fahal is located directly on the Strait of Hormuz, which lies directly opposite Iran. It is not uncommon for freighters from the United Arab Emirates or Saudi Arabia to be impeded by the Iranian Navy on their way through the Strait of Hormuz. Should there ever be escalation between Iran, Israel, and the USA, a blockade of the sea route here is threatened.

Saudi Arabia and the UAE can bypass the dangerous strait with the new port in southern Oman and send their oil via pipelines through Oman to the port there, from where the oil can then be shipped all over the world. Thus, the construction of a second seaport became an investment for the future, in case the oil should ever run out. In this way, Oman can also profit from the oil trade of other nations, although only as a trading hub, but it creates jobs and stability in its foreign policy .

Discover Oman with experts who have called it their home

Your dream holiday, tailor-made by experts.

We don't just know Oman from books, we visit the country several times a year to experience the culture, landscape and people first-hand.

From your first enquiry to your return home, we are there for you personally - by phone, email or WhatsApp, whenever you need us. Our trips are as unique as you are: individually planned and provided with exclusive privileges and high-quality arrangements that will make your trip unforgettable.

You might also like this

A security guard with gray hair and a black cap seen from behind, standing on an escalator in an indoor location.

Safety in Oman

6 min read

Over recent years, Oman has established itself as one of the safest travel destinations in the Middle East, especially appealing to individual and luxury travelers. The Sultanate stands out with its political stability, low crime rate, and well-developed healthcare system that meets the needs of modern travelers. Ranked as the most peaceful country in the region on the 2023 Global Peace Index and scoring extremely low on the Global Terrorism Index, Oman presents a rare oasis of safety. These stable conditions create an ideal environment for relaxed, authentic travel experiences....

A view of rugged rocky terrain and deep canyon walls with winding paths and steep cliffs.

Mountains and Rocks

2 min read

Like hardly any other Arab country, Oman can be proud of a whole series of impressive and exciting mountain ranges. Indeed, these regions are one of the reasons why Oman is becoming increasingly interesting for more and more tourists. For spending a vacation here does not mean lying on the beach for 14 days and lounging around. Rather, one can discover a wide variety of things and natural wonders here. The mountains and rocky landscapes of Oman definitely belong to these natural wonders. Jebel Shams – the highest mountain of the Arabian Peninsula Jebel Shams (translated: Mountain of the Sun)...

A camel standing in a desert with saddles and supplies on its back, with dunes and small structures in the background.

Camels in Oman

3 min read

The Arabian camel and favorite of the population of Arabia is actually a dromedary. The one-humped Camelus Dromedarius differs from the also well-known two-humped Bactrian camel. Both species belong to the family of Camels. The habitat is found in large parts of Asia and Africa. As a wild animal, the dromedary is extinct and only exists domesticated as a beast of burden. No matter how abandoned a camel looks in the vast desert, it always has an owner. There is evidence from Arabia that dromedaries have been domesticated for about 3,200 years. The one-humped camel has a body or shoulder height...