MUSCAT, AUGUST 19 - China, the top destination for Omani crude for well over a decade, lifted around 70 per cent of total crude oil and condensate exports in 2017, but saw its share drop 18.4 per cent to 204.8 million barrels last year versus corresponding figures for 2016. India, with 28.2 million barrels — representing around 10 per cent of total exports — was a distant second. In third position was Taiwan with 21.5 million barrels. The trio together accounted for roughly 85 per cent of total exports of Omani crude and condensates last year, according to the Central Bank of Oman (CBO).
Omani crude oil and condensate exports totalled 294.2 million barrels in 2017, down 8.6 per cent from the previous year’s tally of 321.9 million barrels, in keeping with Oman’s commitment to an agreement reached by Opec/non-Opec producers in December 2016 to curtail global production.
“The exports of crude oil had increased considerably in last two years (2015 and 2016) in line with (higher) production in order to compensate for the fall in oil prices,” the apex bank noted in its 2017 Annual Report.
China has more than doubled its intake of Omani crude over the past decade. From 111.3 million barrels in 2010, it climbed incrementally to reach 251.1 million barrels in 2016 before slumping to 204.8 million barrels in 2017. Japan has also remained a consistent, if modest-sized, market for Omani crude, lifting 10.6 million barrels last year. South Korea, an equally important energy consumer, imported 8.8 million barrels.
The United States, of late a growing market for Omani crude, imported 4.7 million barrels last year, down from 12.9 million barrels a year earlier. Other notable markets were Singapore (1.5 million barrels) and Thailand (0.8 million barrels).
Gas exports, on the other hand, while representing an important share of Omani merchandise exports, were impacted in value terms due to the collapse in international energy prices, according to the Central Bank report.
Exports in the form of Liquefied Natural Gas (LNG) inched up slightly to 8.6 million metric tonnes in 2016, up from 8.5 million metric tonnes a year earlier. Of this total volume, 5.5 million metric tonnes came from Oman LNG, with the balance contributed by Qalhat LNG. In addition, Oman exported 0.238 million metric tonnes of gas condensates in 2017. “Going forward, the exports of natural gas from the Sultanate will get a boost with the signing of Oman LNG’s agreement with BP Singapore recently for the sale and purchase of LNG for a period of seven years,” the banking sector regulator added in its report.
Conrad Prabhu
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