The company has a long history in Oman, which dates back to 1959 when the Royal Charter had granted BP, the precursor to the erstwhile BP Oman and present day omanoil, the right to market oil products in Oman. The charter has been extended several times and has seen unprecedented progress both for omanoil and the country as a whole. omanoil's operations cover a multi-million dollar tank farm and depot at Mina Al Fahal.

BP Oman SAOG was floated in August 1998 and registered as an Omani public joint stock company on the Muscat Securities Market on 1 November 1998.

In December 2002 omanoil bought off the share owned by BP in BP Oman and thereby omanoil was brought forth as a 100% Omani owned company that leverages the multinational heritage and experience and puts it to practice to benefit Oman.