Oman is heading to reduce oil production from its six largest blocks of production by 23% from the levels of the basic production line, as it produced 883,000 barrels per day in October 2018, to commit to reducing OPEC+ production in May and June, and the decrease equals 201 thousand barrels per day, so that its production becomes 682,000 bpd, according to Standard & Poor’s Global.

Under the previous OPEC+ agreement that ended in March 2020, Oman’s share was 961,000 bpd, as the Sultanate of Oman is the largest producer in the Gulf outside of OPEC, but it is a member of the OPEC+ coalition.

Where OPEC+ members consisting of 23 countries agreed in April 2020 to reduce production by 9.7 million bpd in May and June 2020, followed by a decrease of 7.7 million bpd in the second half of 2020, then 5.8 million bpd from January 2021 Until April 2022. The agreement aims to control the declining demand as a result of the Covid-19.

The largest drop that the Sultanate will make comes from Block 6, which is managed by the Petroleum Development Oman company (PDO), which is responsible for the largest portion of crude production, as the company reduced 135 thousand bpd to produce 453 thousand bpd, according to the OPEC website.

It will reduce production from Block 53 of Occidental Petroleum to 88 thousand bpd, and Block 9 of the company will produce 62,000 bpd, while Block 27 will produce about 6000 bpd. The Block 5 that produces 51,000 bpd will reduce production to 39,000 bpd, while blocks 3 and 4 will produce about 30,000 barrels together.

The total oil production of the Sultanate of Oman was expected to reach 964,000 bpd in May 2020, according to the state budget and plan, before the OPEC+ deal, and Oman’s accession to it, and it is expected that the financial parity price of oil at $85.90 per barrel to balance the budget of 2020.