Oman to confine oil production at 970,000bpd, if supply cut continues

Oman plans to limit its crude oil production to 970,000 barrels per day (bpd) this year instead of an original plan of 1,001,000 barrels a day, if the ongoing capping on output continues for the rest of the year in line with Opec and non-Opec countries, according to a senior official at the Ministry of Oil and Gas.

Addressing the annual media briefing here on Monday, Salim bin Nasser Al Aufi, undersecretary at the Ministry of Oil and Gas, said that if oil producing countries extend the production cut beyond the initial six months, the average production will be around 970,000 barrels per day. Organisation of Petroleum 

Exporting Countries (Opec) and non-Opec countries last year decided to cut daily production by 1.8 million barrels for the first six months of 2017.

“We support any initiative that will lift oil prices. If that means extending the current agreement beyond the first six months, we will not block it,” Al Aufi said, adding; “However, we need to know the details – how long it is going to continue.”

Al Aufi noted that the original plan, which was taken before implementing crude oil supply cut, was to produce an average of 1,001,000 bpd this year. This was against last year’s average oil production of 1,004,000 barrels per day.

He said that Oman would enhance its stock level once and the production cap is lifted, the country will be able to produce one million barrels a day.

The average price of Oman Crude dropped by 29 per cent to $40.14 per barrel in 2016.

Source: Timesofoman