H E Dr Mohammed bin Hamad al Rumhi, Minister of Oil and Gas, has said that the sultanate can increase its average oil production to 915,000 barrels per day (bpd) this year, in line with the budget for 2012.
He said, in a statement, that production will increase from April when the Harweel project becomes operational. Harweel is expected to add 30,000 bpd, alongside some wells in Qarn Alam.
H E Rumhi added that there are new companies that will contribute to Oman's oil production during the coming period, such as OC Energy Company, besides those with current operations, such as BP and Occidental Mukhaizna. He pointed out that currently there are seven companies that contribute to the sultanate's oil production.
The minister affirmed that the sultanate attaches great interest in developing the oil and gas exploration and excavation programmes, building oil and gas stations and implementing non-traditional oil projects. He added that allocations have been made for these projects in the 8th Five-Year Plan.
H E Rumhi pointed out that BP has initiated new developments in gas production at Khazzan and Makarem, which will produce 1bn cu ft of gas at the beginning along with some oil condensates.
He said that the sultanate's gas production currently stands at more than 95mn cu m and that estimates forecast production to hit 100mn cu m by the end of this year.
In response to a question on the current oil prices, he added that 25 per cent of the current oil prices is attributed to technical reasons and not to supply and demand forces.
Therefore, if conditions remain as they are, the average oil price for the current year may easily range between US$120 to US$125.
© Muscat Daily 2012
