Oman's Q2-2024 sees 3% boost in oil revenue

Muscat: At the end of Q2-2024, the public revenue decreased by 2% to RO 6,197 million compared to RO 6,342 million registered over the same period of 2023. This decrease is mainly attributed to the decrease in net gas revenue and current revenue.

According to the fiscal performance bulletin issued by the Ministry of Finance, the following are the main items of public revenue:

Net Oil Revenue: At the end of Q2-2024, net oil revenue increased by 3% to RO 3,362 million, compared to RO 3,257 million registered over the same period in 2023. The average realized oil price amounted to US$ 82 per barrel and the average volume of oil production reached 1,003 thousand barrels per day. This is attributed to the methodology of Energy Development Oman (EDO) for collecting oil revenue and managing cash flow.

Net Gas Revenue: At the end of Q2-2024, net gas revenue amounted to RO 943 million, decreasing by 15% compared to RO 1,115 million registered over the same period in 2023 due to the change in the methodology for collecting gas revenue.

Current Revenue: At the end of Q2-2024, the current revenue amounted to RO 1,882 million, down by RO 80 million when compared to RO 1,962 million registered in the same period of 2023.

Meanwhile, at the end of Q2-2024, the public spending amounted to RO 5,806 million, up by RO 120 million, i.e. 2% when compared to the same period in 2023.

According to the bulletin, the following are the main items of public spending:

Current Expenditure: At the end of Q2-2024, the current expenses of the civil ministries amounted to about RO 4,065 million, a decrease by RO 13 million compared to RO 4,078 million at the end of Q2-2023.

Development expenditure: At the end of Q2-2024, development expenditure of civil ministries and units amounted to RO 502 million, representing 56% of the total development spending, i.e. RO 900 million, allocated for 2024.

Contributions and Other Expenses: At the end of Q2-2024, the total contributions and other expenses amounted to RO 1,088 million, up by 40% compared to RO 775 million registered over the same period in 2023. This is mainly due to the implementation of the social protection system.

The subsidies of social protection system, electricity and oil products amounted to RO 280 million, RO 259 million, and RO 153 million, respectively. Furthermore, an amount of RO 200 million was transferred to future debt obligations budget-item.

By the end of Q2-2024, the Ministry of Finance paid more than RO 558 million to the private sector. This reflects the payment vouchers received through the e-financial system that completed their documentary cycle.

During the Q2-2024, the government was able to repay a number of outstanding financial obligations, leading public debt to stand at RO 14.4 billion, compared to RO 16.3 billion recorded at the end of Q2-2023.