Oman

Shell has been present in Oman since the 1930s and is active in exploration, production, trading and retail. Shell has a 34% interest in Petroleum Development Oman (PDO), which accounts for more than 70% of the country’s crude oil production and nearly all its natural gas supply. In 2019, Shell signed an agreement with the government of Oman and Total S.A. for an integrated gas project that is in an early stage of development. Shell also acquired a 50% interest in an onshore exploration licence and a 100% interest in a concession area to undertake the exploration and production of oil and gas.

Shell has a 49% interest in Shell Oman Marketing Company SAOG (SOM), which provides services and sells a wide range of Shell automotive, aviation and marine products, including fuels, lubricants and greases. SOM has more than 180 Shell retail sites in Oman. Sohar Solar Qabas (FZC) LLC represents Shell’s investment in the solar energy sector in Oman.

Country Financial Analysis

The statutory corporate income tax rate in Oman is 15%. Shell's downstream activities are taxable at this rate. Profit in 2019 comes predominantly from the Upstream business and the tax reflects the Oman tax payable on the profits, based on the concession arrangements with the government of Oman. Shell Oman Trading Ltd. (SOMANT) pays income tax on profits generated by Shell’s 34% interest in PDO at the total rate of 83.75%.

Our Payments to Governments Report for 2019 also shows that Shell paid around $1.2 million in bonuses and fees.