Oman’s Record Annual Output Can’t Mask Revenue Declines

Oman’s oil production, including condensate, soared in 2015, averaging a record 981,000 b/d. The Sultanate closed out the year with a record monthly production of 1.007mn b/d in December, edging out the previous record set in July by 6,000 b/d. Omani exports also enjoyed a bumper year, but as with other exporters low prices meant severe revenue falls.

2015 oil export revenue at an implied $17.4bn (see table) was at its lowest level since 2009.

These records were achieved mere weeks after Oil and Gas Minister Muhammad al-Rumhy slammed Opec for its “highly irresponsible” overproduction during Adipec on 9 November. More recently, Mr Rumhy said on 19 January that Oman would be prepared to cut production by 5-10% if Opec and other non-Opec countries took the same action. Fat chance. Iranian President Hassan Rohani has issued orders for Iran to increase production now that nuclear sanctions have been lifted (see p18), and the recent flare-up with Saudi Arabia means the likelihood of the kingdom cutting production to make room for its rival are miniscule.


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