News
Oman boosts output by 25,000 barrels per day
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Oman boosted its crude oil production by nearly 25,000 barrels per day in the first five months of this year as the country pushed ahead with costly projects to raise capacity to 900,000 bpd within three years, official figures showed yesterday.
The increase allied with a surge in oil prices to boost the Sultanate's total revenues by around 20 per cent and allowed it to record a large budget surplus despite an overshooting in actual expenditure, the Ministry of National Economy said.
From an average 713,000 bpd in the first five months of 2007, Oman's oil production jumped to 738,700 bpd in the first five months of this year, it said in a report.
The increase is in line with plans by the government to push up crude production to 790,000 bpd in 2008 after a steady decline in output over the past five years because of lower than expected oil investment to fund projects.
Oman, which is not a member of the 13-nation Opec, pumped nearly 714,000 bpd of crude oil last year, far lower than the 2002 peak of 898,000 bpd. Production has steadily receded since that year as it fell from 328 million barrels in 2002 to 299 million barrels in 2003 and nearly 285 million barrels in 2004. It continued its slide to reach 283 million barrels in 2005 and 269 million barrels in 2006.
Production dived to 259 million bpd in 2007 but the government said output would recover this year as it based its 2008 budget on higher oil production.
Last year, the government announced plans to invest nearly $10 billion (Dh36.7bn) until 2011 to lift crude output capacity to 900,000 bpd and increase gas production.
The surge in oil production has combined with a sharp rise in crude prices to boost Oman's total revenues to RO3.35bn (Dh31.9bn) in the first five months of this year from around RO2.8bn in the same period of last year. Oil export earnings, which account for more than 60 per cent of Oman's total income, leaped by 24 per cent to RO2.18bn from RO1.76bn after the average price of Oman's crude rose to $90.03 from 58.35 a barrel.
The surge apparently tempted the government to overshoot budgeted spending by around 10 per cent, while actual expenditure soared by nearly 15 per cent to RO2.53bn in the first five months of 2008 from RO2.20bn in the same period of last year, the ministry said. Despite higher spending, the budget recorded a bigger surplus of around RO813.8m compared with RO777.2m. The report showed Oman's gas income declined to about RO333.2m in the first five months of 2008 from RO391.3bn in the same period last year. It gave no reason for the decline despite the surge in the country's LNG output following the completion of $700m expansion plans that lifted the capacity of its southern LNG plant by 50 per cent to 10 million tonnes a year.
The increase allied with a surge in oil prices to boost the Sultanate's total revenues by around 20 per cent and allowed it to record a large budget surplus despite an overshooting in actual expenditure, the Ministry of National Economy said.
From an average 713,000 bpd in the first five months of 2007, Oman's oil production jumped to 738,700 bpd in the first five months of this year, it said in a report.
The increase is in line with plans by the government to push up crude production to 790,000 bpd in 2008 after a steady decline in output over the past five years because of lower than expected oil investment to fund projects.
Oman, which is not a member of the 13-nation Opec, pumped nearly 714,000 bpd of crude oil last year, far lower than the 2002 peak of 898,000 bpd. Production has steadily receded since that year as it fell from 328 million barrels in 2002 to 299 million barrels in 2003 and nearly 285 million barrels in 2004. It continued its slide to reach 283 million barrels in 2005 and 269 million barrels in 2006.
Production dived to 259 million bpd in 2007 but the government said output would recover this year as it based its 2008 budget on higher oil production.
Last year, the government announced plans to invest nearly $10 billion (Dh36.7bn) until 2011 to lift crude output capacity to 900,000 bpd and increase gas production.
The surge in oil production has combined with a sharp rise in crude prices to boost Oman's total revenues to RO3.35bn (Dh31.9bn) in the first five months of this year from around RO2.8bn in the same period of last year. Oil export earnings, which account for more than 60 per cent of Oman's total income, leaped by 24 per cent to RO2.18bn from RO1.76bn after the average price of Oman's crude rose to $90.03 from 58.35 a barrel.
The surge apparently tempted the government to overshoot budgeted spending by around 10 per cent, while actual expenditure soared by nearly 15 per cent to RO2.53bn in the first five months of 2008 from RO2.20bn in the same period of last year, the ministry said. Despite higher spending, the budget recorded a bigger surplus of around RO813.8m compared with RO777.2m. The report showed Oman's gas income declined to about RO333.2m in the first five months of 2008 from RO391.3bn in the same period last year. It gave no reason for the decline despite the surge in the country's LNG output following the completion of $700m expansion plans that lifted the capacity of its southern LNG plant by 50 per cent to 10 million tonnes a year.