OVERVIEW According to the US International Trade Administration, oil has been the driving force of the Omani economy since Oman began commercial production in 1967. The oil industry supports Oman’s modern and expansive infrastructure, including electric utilities, roads, public education, and medical services. Oman can produce upwards of one million barrels per day of crude oil and condensates, but honours OPEC+ quotas. Oman’s oil reserves primarily In 2024, Masirah Oil Ltd ("MOL") completed its multi-well programme in the Yumna Field in Block 50 Oman ahead of the 90-day schedule and below budget. The multi-well programme including the drilling of the Yumna-5 well, which started production in April 2024, and workovers of three existing production wells, one more than originally planned. consist of heavy crude, and China is the predominant export market. Oman’s government derives roughly 70 per cent of its annual budget from oil & gas revenues through taxation and joint ownership of some of the most productive fields, and the industry accounts for 30 per cent of Oman’s gross domestic product.1 The Oman Ministry of Energy and Minerals’ (MEM) 2023 Annual Report stated that there were 18 oil and gas exploration and production companies operating in 36 concession areas. Total reserves of crude oil and condensate of Sultanate of Oman expected by the end of 2023 are about 4,971 million barrels, up 1 per cent compared to 2022. Petroleum Development Oman (PDO) reserves accounted for about 60 per cent of the total crude oil and condensate reserves for 2023.2 According to media reports, Oman’s total oil production fell by 5.1 per cent to 332.7 million barrels in the first 11 months of 2024, down from 350.5 million barrels in the same period of 2023, according to data released by the National Centre for Statistics and Information (NCSI). 1 International Trade Administration (US), Oman – Country Commercial Guide (Oil & Gas), 20 February 2024 2 Oman Ministry of Energy and Minerals, Annual Report 2023 OMAN 4 0 Annual Report 2024
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