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Oman Business News

Sultanate to raise crude production

The Sultanate may raise its oil production in the next six months in accordance with the recent Opec agreement, Salim bin Nasser al Oufi, Under-Secretary, Ministry of Oil and Gas, has said. Speaking to reporters at a ceremony held for presenting PDO's In Country Value (ICV) awards, he said this agreement was made to cover the deficit by countries that failed to produce their allotted quota. The Sultanate is contributing to the efforts made to fill this deficit. The proposed production cut by Opec and non-Opec members was 1.8 million barrels per day. The production was increased to 2.8 million barrels per day as some states failed to produce their allotted quota, while others complied with reduced target.

According to Al Oufi, National Programme for Enhancing Economic Diversification (Tanfeedh) had made two important recommendations in the energy sector. The first was to merge electricity sector with oil and gas. The second was to allocate gas to local industries and projects and develop proper plans that allow investors to be aware of procedures for getting the required quantity of gas. Al Oufi added, "Tanfeedh recommended putting electricity sector under oil and gas so that the Ministry of Oil and Gas will be incharge of everything related to energy and be responsible for developing the sector's strategies."

Al Oufi said, work is under way to identify the type of specialties in the Public Authority for Electricity and Water and other public organisations operating in the field of electricity. He said a committee has been formed under the Ministry of Oil and Gas to study all energy-related applications and approve/reject applications or request additional information on the project and link it to ICV. The committee will identify the type of project, the raw materials used in it, the secondary industries, the jobs that will be generated and other works related to such projects. Based on such assessment, the committee will allocate gas for longer periods for such projects.

Al Oufi said the committee comprises public organisations such as the Ministry of Oil and Gas, the Ministry of Commerce and Industry, the Supreme Council for Planning (SCP), the Ministry of Manpower and the Ministry of Finance. The committee seeks to streamline efforts, study the proposed projects and take appropriate decisions. Commenting on developments at Mabrouk field, Al Oufi said negotiations are on between Total and Shell companies and MoUs were signed with these two companies for developing the field and integrating it with downstream sector.
  • Oman
  • Sultanate
  • Crude Oil
  • Increase
  • Ministry of Oil and Gas
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