Oman Plans to Increase Oil Production to 1 Million Barrels per Day

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Researched by Industrial Info Resources (Sugar Land, Texas)--An official from Oman's Ministry of Oil and Gas announced that the Omani government has requested for international oil companies to sign production cooperation agreements with the government early next year to raise the country's oil production capacity to 1 million barrels per day.

Nasser Al Jashmi, Oman's Vice Minister of Oil and Gas said in mid-November that the major increment of Oman's oil production will come from its three key oil fields: Al Mukhaizna, Harweel and Qarn Alam. Oman is also including development in its southern oil fields as part of its plans to increase oil production.

Statistics from the country's Department of Economy show that the average daily oil production in Oman in the first nine months of the year was 730,000 barrels, a 5% increase from the same period the year before.

Compared with other Gulf countries, oil exploration and drilling in Oman is considered more difficult and costly. In recent years, oil production in the country has been deceasing. The oil production capacity dropped from 780,000 barrels per day in 2004 to 774,000 barrels per day in 2005 and down again to 720,000 barrels per day in 2006.

Oman is stepping up efforts to stop its oil production from sliding further. To raise the production, the government formulated a $10 billion plan. The plan includes several projects to revive existing oil fields.

Energy exports account for 80% of Oman's export revenue and 40% of its total GDP.

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