Muscat – The Ministry of Energy and Minerals (MEM) unveiled Oman’s updated Net Zero Strategy and a regulatory framework for carbon markets on Wednesday, reinforcing the sultanate’s target of achieving carbon neutrality by 2050.

The announcement was made during the ministry’s annual media briefing led by H E Salim bin Nasser Al Aufi, Minister of Energy and Minerals. The session reviewed performance across oil and gas, mining, renewable energy and hydrogen in 2025 and outlined priorities for 2026.

The revised strategy, developed through the Oman Zero Neutrality Centre, is based on updated emissions data. It sets out emission reduction priorities aligned with national economic goals, identifies financing needs and defines pathways to accelerate the shift to a low-carbon economy.

H E Al Aufi said the carbon market framework is designed to translate Oman’s target of cutting emissions by 33% by 2035 into tradable and verifiable carbon credits. “The carbon market framework will create new economic opportunities, encourage private sector participation and support the growth of green industries and clean technologies in Oman,” he said.

In the hydrocarbons sector, Oman maintained stable output in 2025. Average daily crude oil and condensate production stood at nearly 1mn barrels, with total annual production reaching 365.8mn barrels.

A total of 64 exploratory and appraisal wells were drilled during the year. Oil and condensate reserves stood at 4.7bn barrels, while natural gas reserves reached 631.5bn m3.

Average daily gas production was 151.2mn m3. LNG exports rose to 11.3mn metric tonnes, underscoring Oman’s position in global energy markets.

In renewables and hydrogen, MEM advanced solar and wind projects and expanded electricity infrastructure. Oman also progressed export corridor initiatives aimed at improving access to international clean energy markets.

H E Al Aufi said the sultanate is targeting at least 10% renewable energy contribution by end-2026, with plans to increase the share to between 90% and 100% by 2050.

Investments linked to green hydrogen projects exceeded RO16.9bn. Oman aims to produce 1mn tonnes of green hydrogen annually by 2030. A unified permit system is under development to streamline procedures, alongside a liquefied hydrogen trade corridor agreement with the Netherlands.

Dr Saleh bin Ali Al Anboori, Director General of Exploration and Production of Oil and Gas, said the 2026 strategy will focus on sustaining production and reserves while enhancing operational safety and promoting new concession areas.

Spending on in-country value exceeded RO11bn over the past decade, reflecting continued efforts to strengthen local content in the sector.

Sector highlights

RO16.9bn – Investments linked to green hydrogen projects

RO11bn – Local content spending over the past decade

1mn tonnes/year – Green hydrogen production target by 2030

10% – Renewable energy target by 2026