Business | Oil & Gas
Oman oil output, exports reverse years of decline
Oman last Friday reported a sharp increase in crude oil exports during the first four months of this year, reinforcing a trend in rising production after years of declining output.
- Staff Report
- Published: 22:43 June 27, 2009
Muscat: Oman last Friday reported a sharp increase in crude oil exports during the first four months of this year, reinforcing a trend in rising production after years of declining output.
Exports of crude oil, which along with gas constitutes the mainstay of the country's revenue earnings, climbed by 10.8 per cent to 79.68 million barrels during the January-April period, against 71.36 million barrels during the corresponding period last year.
According to statistics released by the Ministry of National Economy, total production of crude oil and condensates climbed nearly five per cent to 94.33 million barrels against 89.33 million barrels during the same period in 2008.
Daily crude production also rose 5.8 per cent to 786,100 barrels per day (bpd) against 743,300 bpd during the same period last year.
The increase in crude oil output and exports is heartening news for non-Opec Oman, which continues to rely on hydrocarbons for nearly 60 per cent of its gross domestic product. Output growth also means a reversal of nearly five years of declining production.
Bolstered by new discoveries, the Ministry of Oil and Gas is targeting an average output of 805,000-810,000 bpd in 2009. This compares with output levels averaging 790,000 bpd in 2008 and 710,000 bpd in 2007.
Rising production is seen as proof that the government's multi-billion dollar investment programme to reverse years of declining output is finally paying dividends.
While production has improved, the average price per barrel slumped by a hefty 49.4 per cent from an average of $88.11 (Dh323.4) per barrel during the January-April period last year, to $44.95 this year.
China was the biggest customer for Omani crude, importing 27.48 million barrels, followed by South Korea with 10.68 million barrels, and Thailand with imports of 10.51 million barrels.
Since the start of this year, Oman's government has signed exploration and production sharing agreements (EPSAs) with a number of oil firms, underlining the country's robust appeal to international oil prospectors despite the global downturn.
Canada-based international oil firm Epsilon Energy Limited, Harvest Natural Resources Inc of the US, Malaysian energy giant Petronas, and PetroTel, also of the US, have all signed concession agreements in recent months.
Share this article
More from Oil & Gas
More from Business
Popular in Business
-
Global Village
A world of fun
Revamped layout featuring four cultures to greet visitors this season
Business Editor's choice
-
Time to stop going with the flow
Awareness vital if Gulf states are to overcome dependence on desalination plants
-
Jeddah chamber elects first female
Lama lauds growing influence of women
-
Big Bus makes a stop at Abu Dhabi
Double-decker tour offers visitors a glimpse of capital's cultural treasures
