Despite crude and condensate output falling 34,000 b/d in 2017, and exports dropping 75,000 b/d to 806,000 b/d, Oman’s upstream sector enjoyed a successful year. With the Opec+ production curbs slated to last until end-2018, a liquids output rise this year looks unlikely.
But even with production stagnant, Oman can still expect higher export revenues in 2018. Oman crude averaged $51.3/B in 2017, but is currently selling around $61/B. If exports remain at 2017 levels, $61/B would bring in about $18bn in 2018 for oil exports alone versus $15.1bn for 2017. Meanwhile, a $70/B oil price would push oil export revenues north of $20bn for the first time since 2014 and could drive the budget deficit down as low as $750mn (MEES, 5 January). The deficit after the first 11 months of 2017 was $10.38bn. (CONTINUED - 657 WORDS)
