"The company will boost investments between the two governments to exchange trade in all areas," Khalil al-Khonji, chairman of Oman Chamber of Commerce and Industry told news agency Reuters on the sidelines of a corporate governance conference in Muscat.

"It is part of the Omani government strategy to establish alliances with foreign partners to diversify the economy away from oil income," he added.

Oman, a non-OPEC member, relies heavily on oil revenues that make up nearly 80 percent of its earnings.

The Gulf Arab state is targeting output of 800,000 bpd in 2009. Output from the country’s ageing oilfields has been sliding in recent years.