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Transport and storage

Legal framework

What is the general legal framework governing the transportation and storage of oil and gas resources in your jurisdiction?

According to Royal Decree 37/97, the Council for Financial Affairs and Energy Resources regulates all aspects of the petroleum industry, including formulating the general policy regulating the production and transport of oil and natural gas. In accordance with Article 4 of the Oil and Gas Law (Royal Decree 8/2011), oil and gas cannot be transported or stored without a licence from the Ministry of Oil and Gas, and such transport and storage should be conducted in accordance with the requirements and standards issued by the ministry after coordination with the Council for Financial Affairs and Energy Resources.

The Civil Defence Branch of the Royal Oman Police issues permits for the transport and storage of all hazardous materials. Further, the Ministry of Environment and Climatic Affairs issued Regulation 25/2009 regarding the use of and trading in chemical substances, which applies to oil and gas substances. Further, Royal Decree 10/2016 sets out a general framework regulating the land transport of goods and individuals.

Transportation

How is cross-border transportation of oil and gas resources regulated?

No specific legislation deals with cross-border transport of oil and gas resources. Any oil and gas transport activity must:

  • be licensed by the Ministry of Oil and Gas and the Royal Oman Police; and
  • satisfy the safety standards and requirements set out by both authorities and the Ministry of Environment and Climatic Affairs.

Are there specific provisions governing marine and ground transportation of oil and gas resources?

No specific legislation deals with maritime transport of oil and gas resources. Any oil and gas transport activity must:

  • be licensed by the Ministry of Oil and Gas and the Royal Oman Police; and
  • satisfy the safety standards and requirements set out by both authorities and the Ministry of Environment and Climatic Affairs.

As mentioned above, Royal Decree 10/2016 sets out a general framework regulating the land transport of goods and individuals.

Construction and infrastructure

How are the construction and operation of pipelines, storage facilities and related infrastructure regulated?

The right to use land for the operation of pipelines is usually granted by a way of usufruct agreement. According to Articles 28 and 29 of the Oil and Gas Law, existing oil and gas pipelines and those to be set up in future must have a 25 metre prohibited area on each side of the pipeline centre. 

What rules govern third-party access to pipelines and related infrastructure?

No statutory regulations govern third-party access to pipelines and other infrastructure. Typically, the various oil and gas operators will have contractual arrangements in place which provide for third-party access and right of way, provided that this is allowed under the exploration and production sharing agreement where concession over the relevant land has been granted to an investor.