Oman turns to satellites in search for oil and minerals

• Oman signs deals at space conference
• Satellites help connect remote areas
• Oil makes up 70% of economy

Oman has launched a series of initiatives to help improve connectivity in remote areas and search for oil, gas and minerals following a three-day space conference in Muscat. 

State-run OQ Gas Networks signed an agreement with Omantel, the country’s biggest telecom operator, to use satellites to monitor its vast gas pipeline network. 

OQGN, a subsidiary of sovereign-owned Oman Investment Authority, owns and operates Oman’s 4,000km gas pipeline grid. OQGN is planning to expand its pipeline network by 20 percent by the end of 2027. 

Separately, MB Petroleum, an Omani private company, signed an agreement with Astranis, a San Francisco based developer, to launch a MicroGEO satellite in a deal worth $200 million. The satellite, which is expected to be launched later this year, will help in the operation of oil rigs, the companies said. 

Petroleum Development Oman, in which Shell has a 34 percent stake, said that it is now using satellite monitoring to help find oil reserves undetected by conventional methods.

Oman has attracted OR2 billion ($5 billion) in its space industry programme since 2023, according to Ali Al Shidhani, undersecretary of communications and information technology.

In November last year Oman signed an agreement with Airbus to build its first high capacity communications satellite system as the sultanate’s space programme gathers pace. 

Soud Al Shoaili, head of Oman’s space programme, told AGBI the sultanate’s use of satellites is also about connecting remote areas and expanding global connectivity. 

Further reading:

• Airbus to build Oman’s first communications satellite
• Oman starts work on first space economic zone
• Oman’s growing space sector attracts $52m in investments

Shoaili also said satellites will help identify mineral resources in different areas of the country.

“We can use satellites to find rich reserves of minerals like copper, zinc, gold and others to give our economy a further boost,” he said.

Oman has attracted about $4 billion in investment from international mining companies since 2020 as part of its efforts to diversify away from crude productions.

The sultanate produces about 1 million barrels a day of crude oil that makes up 70 percent of its national economy.