OMAN’S OIL PRODUCTION EXPECTED TO INCREASE NEXT YEAR: H E AUFI

MUSCAT: Oman’s oil production is expected to reach 960,000-980,000 barrels/day in 2015, H E Salim al Aufi said on the sidelines of the ceremony.

According to the National Centre for Statistics and Information, Oman produced 945,000 barrels/day during the first seven months of 2014.

He said that production in the Harweel field might increase next year once repair works are finished, to reach 45,000 barrels/day. He added there may also be a slight increase in Oxy’s Mukhaizna field due to the use of steam injection technology.

Speaking on the current decline in oil prices, he said that most of their projects are budgeted on conservative projections of oil prices at US$65-US$70/barrel, while the current spot price of Oman Crude is around US$84/barrel.

Regarding projects under the management of MOG, H E Aufi said that the decrease in revenues wouldn’t affect projects currently underway, but may affect the implementation of future ones.

He did admit, however, that those who provide services to the oil and gas industry would be affected by the decrease in price. “We expect, with reduced oil prices, the services will be reduced,” he said.

These services include drilling, logistics and chemical supply, he said. “If oil prices go down, everything that serves the oil and gas industry in order to continue serving, will have to come down.”

H E Aufi said that he did not expect a reduction in services to affect production, at least in the short term.

SOURCE: MUSCAT DAILY