This paper describes a dynamic stochastic general equilibrium (DSGE) model for a small open economy with high dependence on oil export. Model consists of three production sectors: tradable and non-tradable sectors and oil extraction sector. Oil is exported and is used as an intermediate input in tradable and non-tradable sectors. The model also assumes the existence of nominal and real rigidities commonly used in the literature: sticky nominal prices and wages, habits in consumption, costs of adjusting the capital stock and costs of adjusting the utilization rate of the capital. As a practical application of the calibrated model we analyze the effect of oil price shocks.