MUSCAT: The Sultanate of Oman recorded a modest decline in crude oil output in 2024 even as natural gas production expanded significantly, reflecting a gradual shift in the country’s energy dynamics, according to the Central Bank of Oman’s Annual Report 2024.

The report showed that the average price of Omani crude slipped marginally by 1.4 per cent to $81.2 per barrel in 2024, compared to $82.3 in 2023. Prices fluctuated between a low of $73.5 per barrel in November and a high of $89.3 per barrel in June.

Despite the minor price drop, the oil and gas sector remained the backbone of the national economy, contributing around 34.6 per cent to nominal GDP. Revenues from these activities accounted for 72.6 per cent of total government income, slightly higher than 71.9 per cent in 2023.

Crude oil production in Oman fell by 5.4 per cent to an average of 992.6 thousand barrels per day, bringing total annual output to 363.3 million barrels. Condensate production also edged down by 0.2 per cent to 85.3 million barrels during the year.

The decline in output reflected natural field depletion and ongoing efforts to optimise production amidst fluctuating global demand.

Exports of crude oil followed a similar trend, slipping by 0.6 per cent to 308.4 million barrels in 2024, compared to 310.3 million barrels a year earlier.

However, the share of exports in total production rose to 84.9 per cent from 81.1 per cent in 2023, signalling sustained external demand for Omani crude despite lower output.

China remained the dominant destination for Omani oil, accounting for a commanding 94.1 per cent of total exports, equivalent to 290.2 million barrels — an increase of 1.6 per cent from the previous year. South Korea ranked second with imports of 5.8 million barrels, up 12 per cent, while Japan imported 5.7 million barrels, marking a sharp 39 per cent decline.

India received 3 million barrels, with Malaysia and other markets taking marginal shares.

Meanwhile, the natural gas sector experienced robust growth, reinforcing Oman’s role as a key regional supplier.

Total natural gas production rose by 5.0 per cent to 54,612 million cubic metres in 2024, up from 51,996 million cubic metres in 2023.

The report attributed this growth to the expansion of domestic gas projects and increased demand from power generation, industrial use and exports.

Associated gas accounted for 21.3 per cent of total production in 2024, up slightly from 21.1 per cent in 2023, while non-associated gas made up the remaining 78.7 per cent.

The data underscored the importance of natural gas as a pillar of Oman’s long-term energy strategy, especially as the country advances towards greater economic diversification and energy transition goals under Oman Vision 2040.

The report’s findings were complemented by detailed charts showing trends in oil production, exports and destination breakdowns.

While oil remains central to Oman’s fiscal stability, the steady rise in natural gas output signals a strategic balance in the energy mix — positioning Oman for sustained growth amidst evolving global energy markets.

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