The agreement will include of oil refineries and petrochemical projects as well as exchanging experience and technologies, said Nasser bin Khamees Al Jashmi, the undersecretary of oil and gas ministry.

He did not give any details about the exact plans or the timeline.

Oman expects to raise crude oil production by four percent in 2011, helped by new discoveries.

PDO is the largest producer of oil in Oman, followed by Occidental Petroleum with around 150,000 bpd.