Oman’s Oil Output Drops 5.3% in H1

Oman’s total oil production declined by 5.3% to 181.1mn barrels during the first half of 2024, down from 191.3mn barrels recorded in the same period last year, according to the latest data released by the National Center for Statistics and Information (NCSI).

Crude oil production dropped by 7.4% to 138.6mn barrels this year from 149.8mn barrels in the first half of 2023, while condensate production increased by 2.3% to 42.4mn barrels, the NCSI data showed.

The sultanate’s daily average output was 20.3% lower at 842,700 barrels per day (bpd) in the first six months of 2024 compared to 1.057mn bpd in the same period a year ago. The average daily production in June stood at 991,400 bpd. The decline in production was mainly due to the sultanate’s commitment to the OPEC+ agreements.

Earlier this year, Oman and other OPEC+ member nations had agreed to extend their voluntary cuts to oil production through the second quarter of 2024. Oman had extended its additional voluntary cut of 42,000 bpd of crude oil until the end of June 2024. This voluntary cut was in addition to the voluntary cut of 40,000 bpd previously announced by Oman in April 2023, which extends until the end of December 2024.

As a result of the OPEC+ output cuts, the decline in Oman’s total oil production could have been much more significant if the sultanate had not increased its condensate output, which is exempt from the obligations of the OPEC+ agreement.

Oman substantially increased its condensate output during the past three years, reaching a new record level this year. Total condensate production during the first half of 2024 increased by 2.3% to 42.5mn barrels compared to 41.5mn barrels recorded in the same period of 2023, according to NCSI data.

Exports remain steady

Oman sold its crude at an average price of US$82.2 per barrel during the January–June period of this year, an increase of 1% from the US$81.4 per barrel average price achieved in the corresponding period of 2023.

Despite a significant drop in production, Oman’s oil exports marginally increased during the first half of 2024. Total oil exports increased by 0.3% to 153.3mn barrels during the first six months of this year compared to 152.9mn barrels in the same period of 2023, according to the NCSI data.

Oil exports to China, the biggest buyer of Omani crude, rose by 5% to 147.9mn barrels in the first half of 2024.

While crude exports to Japan fell by more than 48% to just 2.47mn barrels during the first half of 2024 from 4.78mn barrels a year ago, exports to South Korea doubled to reach 2mn barrels during this period.

Oman’s oil shipments to India also decreased by 63% to just 1mn barrels during the January–June period of 2024.