Jan - May 2007 - Omani Oil Production Down 5.3% YOY - Sixth Straight Year Of Decline - Gulf Times

[hatrack]

DUBAI: Oman’s Ministry of National Economy said yesterday crude oil production dropped 5.3% in the first five months of the year as the country’s ongoing output decline extends into the sixth consecutive year.

Omani oil production averaged 713,000 bpd in the five months ending in May, down from a daily rate of 753,200 barrels in the corresponding period in 2006, according to data published on the ministry’s website. Output was lowest in May at 708,300 bpd, the data show.

Oman is spending billions of dollars on projects aimed at stemming a six-year decline in crude production, which has seen output drop from a high of 956,000 bpd in 2001 to a daily rate of 737,700 barrels last year, according to ministry figures.
Crude oil and natural gas related activities make up about 50% of Oman’s gross domestic product, which last year stood at 13.7bn Omani riyals ($35.8bn) at market prices.

Local firms such as Petroleum Development Oman, the country’s main oil producer, have launched a number of projects applying different enhanced oil recovery, or EOR, technologies to improve crude production rates. PDO, in which Royal Dutch Shell owns a 34% stake, in May awarded two contracts worth a combined $1bn to Indian and local firms to help it develop the onshore Qarn Alam oil field using steam injection. On completion in 2010, the Qarn Alam project is set to add as much as 60,000 bpd of crude output.

EDIT

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=165432&version=1&template_id=48&parent_id=28

OK, do the (rough) math - 60,000 b/d new production by 2010 on the plus side.

On the negative side, take today's figures of 713,000 b/d, and assume a 5% decline for 2008 = 677,350 b/d. Same again for 2009 = 643,483, and again for 2010 = 611,308 b/d. Add on the 60,000 b/d in new production and you're still 40,000 b/d below current production figures. I just hope they've got more than Qarn Alam coming online . . . but then again, given their history with Yibal and the rosy projections there, I have my doubts.