Oman

334 Employees

-1 Oman Shell Tax Contribution Report 2018
Third-Party Revenues
$1,441,805,024
Related-party revenues
$7,126,863,542
Total Revenues
$8,568,668,566
Profit Before Tax
$3,326,904,167
Tax Paid
$3,256,275,643
Tax Accrued
$3,710,123,805
Tangible Assets
$168,377,042
Stated Capital
$76,488,213
Accumulated Earnings
$40,941,160

Main Business Activities

  • Upstream and Integrated Gas
  • Downstream
  • Trading and Supply
  • Other support activities

Shell has been present in Oman since 1958 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. Shell’s portion of tax is paid by Shell Oman Trading Ltd. (SOMANT) on profits derived from trading the hydrocarbons produced, at the total rate of 83.75%.

Shell holds a 30% interest in Oman Liquefied Natural Gas LLC (OLNG), which operates two LNG trains and holds a 36.8% interest in another LNG project (Qalhat LNG). OLNG purchases and processes natural gas into LNG and sells it. Its taxable income is subject to a 15% tax rate in Oman.

In 2018, Shell sold its 17% stake in the Mukhaizna production sharing agreement. This was an unincorporated upstream joint project subject to a 55% tax rate.

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. Its taxable income is subject to a 15% tax rate in Oman.

Country Financial Analysis

Profit is made predominantly from the Upstream business and the tax reflects the Oman tax payable on the profits.

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