Omani Oil, Gas Investment Breeds Production Growth

The Omani oil and gas sector’s significant investment in enhanced oil recovery (EOR) techniques has reaped rewards for the second year running, as newly released figures show the Sultanate’s daily production rose once again in 2009. Oil output increased to an average 812,500 bpd in 2009, a 7.4% hike on 2008 production.

The figures represent the second year of sustained production growth in the sector, reversing a trend of decline which first set in during 2001 when Omani oil production hit its peak of an average 956,000 bpd.

According to media reports, the government hopes to increase production in the sector once again in 2010, hitting a production target of between 860,000 and 900,000 bpd, an article published by Global Arab Network with partnership with Oxford Business Group said.

With state-owned Petroleum Development Oman (PDO) – the Sultanate’s largest oil producer – reporting to local media recently that it expects to keep production for 2010 neutral at an average 540,000 to 560,000 bpd, the extra growth will need to come from smaller operators and new concessions. In that spirit, the undersecretary to the Ministry of Oil and Gas, Nasser Bin Khamis Al Jashmi, announced that the government anticipates awarding a total of 11 new oil exploration and production contracts in 2010. - Argaam