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Oman’s Real Estate Transactions Grow by 16%

General view of old Muscat, Oman, January 12, 2020. REUTERS/Christopher Pike/File Photo
General view of old Muscat, Oman, January 12, 2020. REUTERS/Christopher Pike/File Photo
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Oman’s Real Estate Transactions Grow by 16%

General view of old Muscat, Oman, January 12, 2020. REUTERS/Christopher Pike/File Photo
General view of old Muscat, Oman, January 12, 2020. REUTERS/Christopher Pike/File Photo

The total value of property transactions in the Sultanate of Oman at the end of October 2021 increased by 16.2 percent over the same period of 2020, according to data issued by the National Center for Statistics and Information (NCSI).

The government collected RO62.6 million as real estate transaction fees at the end of October 2021, which represents an increase of 8.2 percent over the same period last year.

The traded value of sales contracts also increased by 52.9 percent to reach RO189,300,000, and the number of sales contracts increased by 48.7 percent to 74,032 contracts, compared to 49,787 contracts during the same period in 2020.

Meanwhile, the traded value of mortgage contracts dropped by 0.9 percent at the end of October 2021 to reach RO1,197,400, compared to RO1,208,400 during the same period last year.

The number of mortgage contracts was 15,380 – an increase of 34.1 percent over the same period in 2020, which recorded 11,466 contracts.

NCSI data also showed a drop in traded value of exchange contracts by 9.74 percent at the end of October 2021 to RO 15.2 million, against RO 60.6 million in the same period last year.

The number of title deeds issued at the end of October 2021 was 210,858, an increase of 37.7 percent over the same period of 2020, in which 15,398 title deeds were issued.

The number of title deeds issued for GCC citizens increased by 112.9 percent to 594, compared to 279 issued during the same period in 2020.

Oman is a relatively small oil producer, and is more sensitive to the fluctuations in crude prices than its oil and gas-rich Gulf neighbors. The country was severely affected by the price collapse in 2020, and in light of the Covid-19 pandemic.

Standard & Poor’s said in October that it revised its outlook on the Sultanate of Oman to positive from stable due to higher oil prices and its financial reform plans that are expected to reduce the government deficit and slow the rise in debt levels over the next three years.

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Will Escalation Stop Israeli Gas Production?

File photo of the Israeli Leviathan field (Reuters)
File photo of the Israeli Leviathan field (Reuters)
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Will Escalation Stop Israeli Gas Production?

File photo of the Israeli Leviathan field (Reuters)
File photo of the Israeli Leviathan field (Reuters)

The American energy giant Chevron, which operates the Leviathan field off the Mediterranean coast of Israel, has decided to suspend work on laying an underwater pipeline, part of its third pipeline project, due to the escalating conflict and fears of potential missile strikes. This follows the earlier closure of the Tamar and Leviathan gas platforms as a “precautionary measure” during the Iranian attack on Israel on Oct. 1.

These developments came as the Israeli newspaper Yedioth Ahronoth reported that the Leviathan field, located 130 kilometers off the coast of Haifa, was the target of a missile barrage fired by Hezbollah on Wednesday morning at Mount Carmel and Haifa. Chevron subsequently activated “special procedures,” stating that it was dealing with an operational incident on the drilling platform.

During last week’s Iranian missile attack, Yedioth Ahronoth noted that NewMed Energy, a partner in the Leviathan and Tamar gas fields (the latter located about 19 kilometers off the Gaza Strip coast), informed the Tel Aviv Stock Exchange of Chevron’s decision to temporarily shut down the Leviathan field for several hours.

“In light of the latest security developments and based on the system’s operational considerations, the operator occasionally halts production from the Leviathan reservoir for certain periods,” NewMed Energy, which holds a 45.3% stake in Leviathan, stated to the stock exchange.

Chevron holds a 39.6% stake in Leviathan, while Ratio Energies owns 15% of the project. Chevron also has a 15% stake in Tamar.

Leviathan’s partners approved a $429 million investment on Aug. 1 to launch the preliminary engineering design phase to increase Leviathan’s gas export capacity from the Mediterranean Sea field to 21 billion cubic meters annually.

NewMed Energy stated that Chevron had informed the partners that plans for laying the underwater pipeline have been postponed until Apr. 2025—initially scheduled to begin in the second half of 2025—due to the deteriorating security situation. The delay is expected to be at least six months, affecting next year’s projected cash flow.

Currently, gas from the platform is transported to the shore and integrated into Israel’s national grid, where it is distributed to Israel, Egypt, and Jordan.

The Leviathan field was discovered in 2010 by NewMed Energy, Chevron (then known as Noble Energy), and Ratio. Natural gas production from Leviathan began on December 31, 2019, and since then, it has become a key source of gas for Israel, Egypt, and Jordan.

The third pipeline project was initiated by the Leviathan partners in July 2023, aimed at boosting Leviathan’s annual production capacity from 12 billion cubic meters to around 21 billion cubic meters. This increase is intended to meet growing local demand and export to neighboring countries and international markets, according to NewMed Energy.

Israel continues to export gas through pipelines from Leviathan and Tamar to Jordan and Egypt. Israeli exports to Egypt rose from 4.9 billion cubic meters in 2022 to 6.3 billion cubic meters in 2023, while sales to Jordan remained steady year-on-year at 2.7 billion cubic meters. In the second quarter of this year, Leviathan’s total gas production reached 2.8 billion cubic meters, with exports to Egypt rising by 12.5% to 1.8 billion cubic meters during the same period, while 0.6 billion cubic meters flowed to Jordan, according to Energy Intelligence.

Goldman Sachs estimates that the potential global market impact of disruptions at Leviathan and Tamar could reduce global liquefied natural gas (LNG) supply by nearly 9 billion cubic meters annually, or 1.7% of global LNG supplies, according to a report by Energy Intelligence.