The cost to the Omani government towards procuring and transporting natural gas as feedstock and fuel to various end-users across the country is estimated at RO 1.6 billion in 2022, representing a more than 100 per cent increase from the previous year’s tally of RO 780 million.
According to the Ministry of Finance, the increase is primarily attributable to a new methodology that came into play following the establishment of Energy Development Oman (EDO), the state-owned holding company set up in 2020 to represent the government’s stake in Petroleum Development Oman (PDO).
“After the establishment of EDO, the methodology of purchasing gas from Petroleum Development Oman’s (PDO) Block 6 was changed. Accordingly, gas purchasing cost has risen. However, this also has led to an increment in gas revenue compared to the figures of 2021,” the Ministry stated in the 2022 Budget Statement.
Against a gas procurement cost of RO 650 million and gas transport cost of RO 130 million estimated in 2021, the 2022 Budget now features a revised provision for RO 1440 million towards gas procurement and RO 143 million towards gas transportation. Together with allocations of RO 17 million towards Block 8, the gas expenditure for the government totals RO 1600 million, the Ministry noted.
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