Production of Omani oil will continue at around 950,000 barrels per day (bpd) for at least the next 2 years, Reuters are reporting.
Oman’s oil & gas minister, Mohammed bin Hamad Al Rumhy, told Reuters that the country is set to implement a host of techniques to bolster production levels for the next 2 – 3 years.
“Improved oil recovery and enhanced oil recovery (techniques) we are doing to sustain production at current levels. Our priority is to sustain the production,” he told Reuters.
Oman’s oil and condensate production averaged 930,000 bpd in 2013, Mohammed bin Hamad Al Rumhy said.
He also said he favoured ending subsidies on retail fuel prices and hoped a decision would be taken soon on a price increase.
“There is a consensus that we need to increase the price as the current subsidy system is not sustainable … when we do it I cannot predict, hopefully soon,” he said.
Oman is under more immediate pressure to reform than its wealthy Gulf neighbours as its energy resources are less ample. The International Monetary Fund has warned that Oman’s state finances could slide into deficit in coming years because of recent public spending rises.
“The timing is an issue when you remove a subsidy, it becomes more of a political issue than economic issue. I am talking from an economic angle,” Rumhy said.
In a rare reform, Oman announced plans in early 2013 to double its industrial gas price to $3 per million British thermal units, still cheap by international standards, by 2015.
