Uptick in Oman’s oil exports to Europe

The Omani government has been working for several years to diversify its sources of national income. At the same time, Oman has been able to increase the volume of its oil production to more than one million barrels per day (bpd), from around 700,000 bpd 10 years ago, while efforts continue to uncover new oil and gas discoveries. These efforts make Oman one of the leading countries in the region in terms of energy exports to the world.

Recent indicators confirm the presence of large quantities of oil and gas in a number of areas, onshore and offshore, of the Sultanate of Oman. This was confirmed by some reports issued by oil companies including Occidental Oman, which confirmed in its recent statement that it had discovered new quantities of oil that would increase the value of Omani exports to countries around the world. Total national oil reserves amounted to about 4.905 billion barrels in 2022.

Some European countries are on the list that import Omani oil, with inflows reaching the highest level during the past ten years. The quantity exported during the first seven months of the current year reached about 3 million barrels of oil which enhances trade exchange between Oman and these countries. This development comes as a result of the cessation of Russian oil exports to those countries due to the ongoing war between Russia and Ukraine. It is usual for Oman to export its oil to Asian countries such as China, Japan, India, South Korea, Thailand, Taiwan and others, but some of these quantities have begun to be supplied to European countries due to Russia’s current crisis with those countries.

Official data indicate an increase in net export revenues from crude oil during the first half of the current year 2023 to reach $8.4 billion, compared to $8.2 billion during the same period of last year 2022, while oil production reached 1.061 million barrels per day, compared to 1.037 million barrels per day during the same period a year earlier. This enhances Omani revenues that go towards enhancing development areas and reducing the country’s public debt, in addition to enhancing the assets of the country’s sovereign funds.

At the same time, the country continues to sign contracts to enhance areas of its energy transition (green hydrogen, in particular) within the framework of the economic diversification policy, in addition to developing non-oil sectors in the fields of manufacturing, fisheries, mining, tourism, and others.

Oman works within the framework of the economic vision (Oman 2040) to enhance the various aspects that support the local economy and works to increase financial returns from those sectors and provide more job opportunities for citizens, in addition to working on the financial sustainability of the programs that the government plans to establish and to obtain more oil and gas revenues.

These policies have encouraged more international oil companies to invest in the areas of oil and gas exploration that the Omani government allocated in some concession areas, which will increase the size of macroeconomic, and raise the level of Oman’s share in oil production in the coming years. It will improve also the financial position of the Sultanate, help reduce public debt, and achieve a surplus in the country’s annual financial budgets.