MUSCAT, Oman: August 15, 2019. Panalpina is to open an office in Muscat this year to provide project and general forwarding services in support of the country’s fossil fuel and general trade sectors.
Oil and gas revenue has underwritten Oman’s economy since oil production began in the late 1960s. Currently it produces about 900,000 barrels of oil per day, which accounts for about four-fifths of government revenue.
According to Panalpina, the government is now aiming to diversify its economy by focusing on agriculture, fisheries, tourism, mining, public utilities and manufacturing.
With a growing number of large infrastructure projects and its transhipment hub for Qatar, the company thinks Oman is fast becoming the latest business hotspot within the Middle East region. In response, it recently completed the registration of Panalpina Oman with minority partner the Daoud Group, a family-owned Omani business conglomerate.
Charles Francis, Panalpina country manager for Qatar, Kuwait and Oman commented: “Oman has become a pivotal geographical location for cargo flows to and from Qatar. Unlike some of the Gulf Cooperation Council (GCC) countries, Oman has not introduced economic sanctions and its trade with Qatar has increased by more than three times since the embargo started two years ago.”
Pictured: In 2016 Panalpina shipped 62 kilometers of pipeline from China to Oman for an oil and gas customer. Gas pipeline pipes are normally 12 metres in length but these were 18 metres long with a diameter of 90 centimetres and a weight of eight tonnes. Special lifting equipment had to be designed for safe off-loading of the vessel discharge in Duqm, Oman. The company expects these shipments to continue to play a role in the country’s energy sector and capital infrastructure projects.