Oman is to invest $1bn in a field southeast of the capital to boost gas production.
Like most of its Gulf neighbours, Oman is short of the gas it needs to meet rapidly rising demand for industry and power.
"We are planning to produce 90 million cubic feet of gas per day from block 60 by the first quarter of 2013 to cater for increasing local demands," state-run Oman Oil Exploration and Production Co (OEPC) said on Sunday.
Block 60, covering nearly 1,500 square kilometres, was ceded by British-based BG in October and its assets were bought by OEPC.
BG had planned to start gas output from the block in 2012 and has already made substantial drilling investment there.
Oman, a non-OPEC producer, produces 864,000 barrels per day of crude oil and an average of 3 billion cubic feet of gas per day.
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