Global Arab Network | Oman - Oil production set to rise to 900,000 bpd in 2010

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Oman - Oil production set to rise to 900,000 bpd in 2010

Thursday, 05 November 2009 23:23

Oman’s oil output is set to increase significantly during 2010 on the back of the hydrocarbon sector’s continuing healthy performance, according to Oil and Gas Minister Dr Mohammed bin Hamad al Rumhy. Production is projected to increase to between 850,000 and 900,000 barrels/day (b/d), maintaining a year-on-year trend in output growth. This jump compares with a current output of around 805,000 b/d for 2009, entailing a 6.5 per cent increase over the 2008 output of 756,000 b/d, and a 13 per cent rise over the 2007 output of 710,000 b/d.

“The hydrocarbon sector is healthy and looks very promising,” Dr Al Rumhy said. “As you are aware, our production rate has been increasing year-on-year. In 2009, we expect to average around 805,000 b/d compared to that of 2007 and 2008 at 710,000 and 756,000 b/d respectively. The production for September 2009 has been around 840,000 b/d. For 2010 and beyond, we will be doing between 850,000 to 900,000 b/d,” he added in an interview to the Observer.

The upbeat hydrocarbon projections for 2010, Dr Al Rumhy pointed out, further underscore continuing successes by oil producers in ramping up output. “We are fortunate that all producers have so far met or exceeded their production targets. For example, PDO is expected to end the year at 555,000 b/d (excluding condensate), Oxy at around 140,000 b/d, and Daleel Petroleum around 22,000 b/d, which is very encouraging for all of us. There exists a number of growth opportunities which will be realised in the coming years,” he said.

Dr Al Rumhy also emphasised Oman’s continuing investment appeal to international oil companies, with the Ministry planning to shortly launch a new licensing round for a number of hydrocarbon blocks. “Indeed, Oman has continued to attract foreign investors, despite the slow global market condition,” he said, attributing this appeal to the healthy state of the Sultanate’s oil and gas sector and its prospects for growth in the future.

“We have floated a few tenders in the middle of the year, and we are in discussion with some of the interested companies, the results of which will be known before the end of the year. We are also in preparation for a new bid round soon. We are confident that we will get reputable companies to work on them. Our doors are open for any size of companies who are willing to be our partners. Our process is transparent.” On the gas front, Oman continues to meet the demand of customers, Dr Al Rumhy said, noting that gas availability is currently well over 99.8 per cent. But he acknowledged “production challenges” in the continuing quest to boost gas output. “We have to be smarter in the way we develop our fields by selecting the right technology for the right field,” he noted.

Commenting on the outlook for the gas sector, he said the uptake of gas was projected to increase during end-2009 and early 2010, following a period of lower demand on account of the global slowdown. “The gas sector, like oil, is healthy. However, unlike oil, the demand for gas by our customers, especially the LNG buyers, was lower in 2009 than that of 2008. For this reason, we had to reduce our gas production, mainly that of PDO, while meeting all of our commitments to our customers. While the global market is healing, some of our customers have notified us of their willingness to take up the make-up gas quantities later this year or early in 2010.”

Dr Al Rumhy also welcomed the progress made by BG and BP in efforts to explore for gas in their respective blocks in central Oman. Asked about proposals for the establishment of a major refinery and petrochemical complex at Duqm, Dr Al Rumhy voiced hope that the initiative would move ahead in the future.

Global Arab Network

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