SEIZ­ING THE OP­POR­TU­NI­TIES

Oil and Gas - - EDITOR’S NOTE -

The Oman Gov­ern­ment’s firm re­solve to con­tinue de­vel­op­ing new oil and gas pro­jects even if crude oil prices slide be­low the cur­rent level shows the pos­i­tive out­look for the year ahead.

“Our sys­tem is re­silient enough to pro­duce oil even if prices drop be­low the cur­rent level,’’ af­firmed HE Salim bin Nasser Al Aufi, Un­der­sec­re­tary at the Min­istry of Oil and Gas, at the 2018 an­nual me­dia brief­ing. The price of the Oman Crude Oil Fu­tures Con­tract av­er­aged $51.29 in 2017, which was up by $11.15 per bar­rel over 2016. While the high­est price of $55.59 per bar­rel was recorded in De­cem­ber 2017, the low­est was $44.54 per bar­rel reg­is­tered in Jan­uary 2016.

Driv­ing forth the pos­i­tive out­look, Petroleum De­vel­op­ment Oman (PDO) has con­firmed a “sig­nif­i­cant” gas find with es­ti­mated re­cov­er­able re­serves of more than four tril­lion cu­bic feet (TcF) and 112 mil­lion bar­rels of condensate in the north­ern part of its con­ces­sion area.

The Sul­tanate’s to­tal gas re­serves stood at 24.96 tril­lion cu­bic feet (TCF) by the end of 2017, pri­mar­ily at­trib­uted to Khaz­zan and Ghazeer fields. Around 4.97 TCF of new re­serves were added in 2017, up from 3.81 TCF in 2016. Oil and condensate pro­duc­tion av­er­aged 972,000 bar­rels per day in 2017, down from 1004K in 2016 demon­strat­ing the Sul­tanate’s com­pli­ance with OPEC agree­ment to cut pro­duc­tion.

Yet an­other no­table achieve­ment has been the in­au­gu­ra­tion of one of the three im­por­tant strate­gic growth pro­jects un­der­taken by Or­pic which is the Mus­cat So­har Prod­uct Pipe­line (MSPP) and Al Jef­nain Ter­mi­nal. The $336 mil­lion in­vest­ment is an im­por­tant lo­gis­tics project across the Sul­tanate which de­liv­ers more than 50 per cent of Oman’s fuel via the state-of-the-art storage fa­cil­ity in Al Jef­nain. In ad­di­tion to meet­ing the do­mes­tic fu­ture de­mand for fu­els, the project re­duces pol­lu­tion re­sult­ing from lower truck move­ments in Mus­cat by 70 per cent.

OGR, which was a bi-monthly mag­a­zine, will now be a monthly from May 2018 En­joy read­ing the is­sue

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