Omani oil production fell to 671 thousand barrels per day for July2020

The monthly report of the Omani Ministry of Oil and Gas stated that the Sultanate’s average daily production of crude oil during July 2020 declined to about 671 thousand barrels per day.

crude oil production in Oman earlier approached one million barrels per day, of which 582000 b/d produced by Petroleum Development Oman (58%.)

The International Energy Agency had previously warned of the danger of a decline in Omani oil production due to the aging of the oil fields, and stated that if production rates continued as they were, and no tangible additions to Oman’s oil reserves were achieved through new important discoveries, Oman would give up its position as an important oil exporting country within 20 years.

The Sultanate of Oman is making great efforts to increase its production capacity from oil, and most of the increase comes from small and medium-sized fields, most of which are located in difficult petroleum reservoirs and require development drilling inside the fields.

Currently, efforts in the fields are focused on maintaining actual production levels, and this includes the use of enhanced oil recovery processes on a large scale, and the use of sophisticated methods that combine injection of gas mixtures, thermal method, and chemical method.

According to BP Statistical Review 2020, the total proven oil reserves in the territory of the Sultanate amounted to 5.4 billion barrels at the end of 2019. The Ministry of Oil and Gas continues its efforts to encourage companies to pursue exploration and production.

It is worth noting that the Sultanate of Oman works within the OPEC group (+), and is committed to the production goals agreed upon with the rest of the independent producers (namely Russia, Mexico, Kazakhstan, Azerbaijan, Bahrain, Equatorial Guinea, Sudan, Tunisia and Brunei) regarding the implementation of the organization’s decisions aimed at reducing crude oil production.

Omani oil exports go to many regions, China accounts for the largest part of Oman’s oil exports, followed by Thailand and Korea.