December 04, 2008

Oman oil production rising to 1 million barrel per day

Reuters reported that non OPEC oil exporter Oman will invite international oil firms to sign production sharing deals early 2008 to help increase output to 1 million barrel a day.

Mr Nasser Al Jashmi undersecretary of oil & gas of Oman said that most of the increase would come from 3 major oil fields already in production, but declined to give a specific timeframe for the target. He added that “We see our future production rising to a million barrels per day mainly coming from Al Mukhaizna, Harweel and Qarn Alam. We will also be aggressively marketing a few blocks, especially in the south of Oman as part of our target to increase output.”

It is noted that the hydrocarbons sector accounts for 80% of Oman’s export earnings and 40% of GDP and the sultanate is trying to halt the decline in production that began in 2001. It is undertaking a number of enhanced oil recovery projects to get more oil out of existing fields as part of a USD 10 billion plan to boost oil and gas output.

Oman produced an average of 730,000 barrels per day for April to September 2007 up by 5% YoY from the same period last year. Its oil production in 2006 fell to around 720,000 barrels per day from about 774,000 barrels per day in 2005 and 780,000 barrels per day in 2004.