Oman May Cut Oil Investment If Oil Prices Remain Subdued

Having previously brushed off suggestions of lower oil prices impacting its future upstream plans, Oman now acknowledges that investment will likely be cut if prices remain at $50-60/B for a sustained period.

Oman is considering shelving some planned oil and gas sector projects should global oil prices remain at current levels over the mid- to long-term, undersecretary to the Ministry of Oil and Gas (MOG) Salim al-Oufi said this week, in a marked change of tone to previous comments made on the subject of lower oil prices since late last year.

“If it [the fall in oil prices] is long-term, we will definitely be shelving some projects that are expensive,” Mr Oufi told the local press in Muscat on 2 March, adding that as of now Oman is maintaining spending. “Before we make any changes, we must understand whether this is a long-term problem, which is going to last for some time, or it is a short-term issue,” Mr Oufi says. (CONTINUED - 1349 WORDS)