Oman’s oil production this year is targeted at around 990,000 barrels per day (bpd), Mohammed bin Hamad Al Rumhy, the country’s Minister of Oil and Gas has said, adding it would be difficult to halve the economy’s dependence on oil in five years.
The target for this year is 980,000 to 990,000 bpd or slightly more than that, the minister told reporters on the sidelines of a ceremony held in Muscat on Monday.
Al Rumhy also commented on the target mentioned in the 2016 to 2020 plan to reduce the oil industry’s contribution to Oman’s gross domestic product (GDP) to 22% from 44%. The plan was announced recently in a statement issued by the Supreme Council for Planning.
Asked if the target is achievable, Al Rumhy said, “With difficulty.”
“We are producing more oil, we are looking for more oil, and we are contributing more. So the challenge is for others to catch up with us and maybe defeat us,” he said.
“Because now we are quite ahead in this race of who is paying more to the nation, and we are paying a lot, and we want others to get close to us and maybe go in front of us. But so far, I do not see anyone behind us,” he explained.
On the planned Iran-Oman gas pipeline, he said, “We are doing fine. We are progressing.”
In addition, PDO’s managing director, Raoul Restucci said the company plans to exceed last year’s production level and is targeting more than 600,000 bpd this year.
According to him, the company produced a total of 1.29mn bpd in oil and gas in 2015.
Asked about the average cost of extraction at PDO, Restucci said, “Primary is less than $5 (per barrel); secondary is up to $12; tertiary is $20. It depends.”
The official also noted that the company plans to drill more than 500 wells this year, adding, “Last year, we drilled more than 500.”
Commenting on PDO’s challenges and strategies in 2016, the managing director said the company’s objective is to ‘stay the course,’ continue with its programmes, make continuous business improvements, reduce waste and duplication and become more efficient.
