Oman: Oil Price Revival Key To Sustaining Record 1mn b/d Output

Omani oil output topped 1mn b/d for the first time in July, a source of great pride. But with oil prices down sharply, future investment is coming under pressure.

Oil producing companies in Oman should continue turning a profit, even if oil prices fall further from the near six-year lows seen last week, Oil Ministry Undersecretary Salim al-‘Oufi says. But should the market not pick up soon, and prices remain low, this will undoubtedly hit companies’ capital expenditure plans going forward, and in turn undermine the sultanate’s efforts to sustain production above 1mn b/d, a level it hit for the first time ever in July (MEES, 21 August). (CONTINUED - 1025 WORDS)