MUSCAT, DEC 25
Oman’s oil and gas sector has demonstrated its resilience and potential for growth in the period of January to November 2023.
Despite global challenges, the data from the National Centre for Statistics and Information (NCSI), provides a positive outlook for the sector, showcasing controlled declines in production and a strategic approach to diversifying export destinations.
According to NCSI’s monthly bulletin, during the Jan-Nov 2023 period, there was a moderate but controlled decline of 1.4% in oil production, amounting to 350.538 million barrels compared to the same period in 2022 with 355.472 million barrels.
This decline is primarily due to a planned reduction in crude oil production, which experienced a decrease of 3.9% (272.457 million barrels), while condensate production showed healthy growth of 8.5% (78.080 million barrels).
This measured approach ensures the sustainability of resources while maintaining competitiveness.
Despite the decline in overall production, Oman has aimed for stability in daily average production, with only a marginal decrease of 1.4% to 1.049 million barrels in the Jan-Nov 2023 period. It demonstrates Oman’s commitment to meeting domestic demand and actively participating in the global energy market.
In terms of pricing, the average price of oil declined by 14.8% to $81.6 per barrel in the Jan-Nov 2023 period.
One of the remarkable achievements in Oman’s oil and gas sector during this period is the successful diversification of export destinations.
While major countries around the world witnessed a decline in oil imports, Oman managed to hold its ground.
Notably, Oman exported to Japan 8.885 million barrels until Nov-end, a decline of 16.9% compared to the same period last year.
Also, exports to South Korea declined by 68.5% with 3.802 million barrels compared to the same period last year with 12.071 million barrels.
However, Oman experienced a significant increase of 10.1% in exports to China, solidifying China’s position as a crucial partner for Oman’s energy trade. Oman exported 260.636 million barrels until Nov-end compared to 236.765 million barrels during the same period last year.
Additionally, Oman’s efforts to expand its customer base paid off, with a remarkable 147.8% increase in exports to other countries.
This diversification strategy has ensured stability despite unpredictable market conditions.
Alongside the oil sector, Oman’s natural gas production has also flourished during Jan-Nov 2023.
The country saw a 4.9% increase in imports and local production, amounting to 49.444 billion cubic metres.
This growth can be attributed to both associated and non-associated gas sources, which have supported domestic needs and various industrial sectors.
Industries such as power generation, other industrial projects, and oil field activities experienced substantial growth rates, highlighting Oman’s commitment to sustainable and diverse energy solutions.
Oman experienced a significant increase of 10.1% in exports to China, solidifying China’s position as a crucial partner for Oman’s energy trade. Oman exported 260.636 million barrels until Nov-end compared to 236.765 million barrels during the same period last year.
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