Muscat – Oman’s total oil production declined by 5.2% to 211.9mn barrels during the first seven months of 2024, down from 223.5mn barrels recorded in the same period last year, according to the latest data released by the National Center for Statistics and Information (NCSI).
Crude oil production dropped by 7.1% to 162.2mn barrels this year from 174.6mn barrels in the first seven months of 2023, while condensate production increased by 1.6% to 49.7mn barrels, the NCSI data showed.
The sultanate’s daily average output was 5.7% lower at 994,800 barrels per day (bpd) in the first seven months of 2024 compared to 1.054mn bpd in the same period a year ago. The average daily production in July stood at 992,000 bpd. The decline in production was mainly due to Oman’s commitment to the OPEC+ agreements.
Earlier this year, Oman and other OPEC+ member nations had agreed to extend their voluntary cuts to oil production through the second quarter of 2024. Oman had extended its additional voluntary cut of 42,000 bpd of crude oil until the end of June 2024. This voluntary cut was in addition to the voluntary cut of 40,000 bpd previously announced by Oman in April 2023, which extends until the end of December 2024.
As a result of the OPEC+ output cuts, the decline in Oman’s total oil production could have been much more significant if the sultanate had not increased its condensate output, which is exempt from the obligations of the OPEC+ agreement.
‘We expect Oman’s hydrocarbon sector output to remain broadly flat in 2024, with the decline in oil production offset by an increase in condensate and gas production. A probable increase in hydrocarbon production should stimulate growth in 2025 and 2026,’ S&P Global Ratings said in a report earlier this year.
Oman sold its crude at an average price of $82.5 per barrel during the January–July period of this year, an increase of 2.5% from the $80.49 per barrel average price achieved in the corresponding period of 2023.
Despite a significant drop in production, Oman’s oil exports remained steady during the first seven months of 2024. Total oil exports inched up 0.05% to 179.03mn barrels during the first seven months of this year compared to 178.9mn barrels in the same period of 2023, according to the NCSI data.
Oil exports to China, the biggest buyer of Omani crude, rose by 4.8% to 171mn barrels in the first seven of 2024 compared to 163.1mn barrels in the same period a year ago.
While crude exports to Japan fell by more than 40% to just 3.45mn barrels during the first seven of 2024 from 5.84mn barrels a year ago, exports to South Korea rose by 28% to reach 2.5mn barrels during this period. Oman’s oil shipments to India dropped by 63% to just 1mn barrels during the January–July period of 2024.
