Oman continues to plough resources into its upstream oil and gas sector despite falling revenues prompting it to last month slash 11% from its budget for 2016 (MEES, 8 January). A preliminary agreement was signed with BP on 14 February to expand the Khazzan gas project, boosting planned capacity from 1bn cfd to 1.5bn cfd.
Overall production of Omani crude oil and condensate topped 1mn b/d for the second straight month in January, the first time Oman has achieved this feat. Although the rig count fell from its December record of 73 to 70 last month, a major drop off in development of the Sultanate’s oil and gas sector appears unlikely (MEES, 12 February). Indeed, while the overall rig count fell, the number of gas drilling rigs remained at a record 15. (CONTINUED - 724 WORDS)