Abstract The role of Proterozoic sediments as source rocks for oil in Arabia is more significant than previously realized. This paper shows their importance for the origin of oil in eastern Arabia, especially Oman, and by inference from similar sediments of the Persian Gulf area. Proterozoic sediments, some 4 km thick, yield oil in eastern Arabia (Oman), which emanates from salt-related kerogenous source rocks. Most Paleozoic and Mesozoic reservors in this area contain Proterozoic oil which has migrated both laterally and upwards along fractures. Almost all the Persian Gulf and large areas of southern Iran and northeastern Arabia are underlain by a thick sequence of similar sediments, known as the Hormuz Series, with interbedded salt, anhydrite, dolomite, shale and sandstone. This Lower Mobile Series (O'Brien) is not only the cause of many salt-dome-related oil and gas fields but is also considered to have been a major source rock for hydrocarbons accumulated in Ordovician, Devonian, Carboniferous, Permian and probably younger reservoirs. The Late Proterozoic crude oils of eastern Arabia are chemically distinct, with low C28/C29 sterane ratios, low pristane/ phytane ratios, strong negative carbon isotope ratios, and presence of x-branched hydrocarbons. The wide extent of Proterozoic crudes, in oil reservoirs ranging in age from Upper Proterozoic to lower Cenozoic in Oman, suggests that these Upper Proterozoic sediments have been very significant source rocks for the accumulation of the prolific oil and gas fields of the entire Persian Gulf area.