SEIZING THE OPPORTUNITIES
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