Oman: Gas Production to Surpass Oil by 2023

Laxman Pai
Wednesday, March 6, 2019

Oman’s gas production levels are set to surpass oil by 2023 thanks to an impressive surge in the development of gas fields in the sultanate, according to Rystad Energy, the independent energy research and consulting firm headquartered in Norway.

“Gas is on the rise in the Arab country on the southeastern coast of the Arabian Peninsula in Western Asia, and this transition is very timely. Oil output declines over the last two years may indicate a point of no return for Omani oil, but the country’s sliding oil production is set to be replaced by gas,” said Rystad Energy analyst Aditya Saraswat.

At peak production in 2016, Oman’s oil output reached 900,000 barrels per day (bpd), declining to 870,000 bpd by 2018.

Rystad Energy estimates that by 2025 oil production will decrease by an additional 200,000 bpd, as output from older fields continues to slump.

As new oilfield developments have failed to stabilize the country’s crude output, Oman has shifted its focus to invest in gas developments. This will see gas production escalate to approximately 130 million cubic meters per day (MMcmd) by 2025, shifting Oman’s oil-gas production mix from about 35% gas in 2015 to over 50% in 2025.

“This is a tremendous turnaround from the near-stagnant 80 MMcmd of gas output from 2008 through 2016,” Saraswat remarked.

He added: “Amidst rising global liquefied natural gas (LNG) demand and the increasingly lucrative domestic gas market, international players are favoring gas developments in Oman. The strengthened gas market will help gas production levels to outshine Oman’s dwindling oil production, with gas output projected to overtake oil by 2023.”

Categories: Energy Middle East Offshore Energy Oil Gas Research

Related Stories

Iraq, Pakistan Secure Oil Shipments via Hormuz with Iran Agreements

Oil Prices Edge Higher Amid Uncertainty Over Iran Deal

Gulf Marine Services Profit Plunges After Gulf Vessel Evacuations

IEA: Middle East Conflict Reshaping Medium-Term Gas Outlook

ADNOC Drilling Finalizes MB Petroleum JV, Expands Regional Fleet

Brent Near $114 as Middle East Conflict Continues

Middle East Conflict Jolts Offshore Drilling Market

MidEast Energy Output Recovery to Take Two Years, IEA Says

Iran-Linked Tankers Sail Through Hormuz Before US Blockade

China Calls for De-Escalation as US Threatens Hormuz Blockade

Current News

Eni Inks Long-Term Indonesia LNG Supply Agreements

Indonesia Locks In LNG Supplies from Inpex' Abadi and Eni’s South Hub

Wood Secures Subsea Design Scope on QatarEnergy’s Bul Hanine Redevelopment

Oil Prices Rise as Iran Talks Stall and Inventories Shrink

Indonesia Puts 13 Oil And Gas Blocks on Bidding Round Offer

BP Adds Three Exploration Blocks off Indonesia

Indonesia Signs Eight Oil and Gas Contracts

Inpex Inks Abadi LNG Gas Supply Deal With Indonesian State Firms

Energean Cuts 2026 Output Forecast After Israel Shutdown

Wison Starts Topsides Fabrication for Türkiye’s Sakarya Deepwater FPU

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com