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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)