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FINANCIAL NEWS
Oman allocates $3.5b for boosting oil output
20 Jul 2010
(MENAFN) An official at the Omani finance ministry said that the government is planning to invest $3.5 billion in the next five years in boosting oil output by 18 percent, in order to generate cash for infrastructure projects, Gulf Daily News reported.
He pointed out that Oman is currently producing 850,000 barrels per day (bpd) and expects to raise output to an average of 870,000 bpd this year. It has managed to turn around declining output, boosting production in both 2008 and 2009.
Following a price crash after the July 2008 record of nearly $150 a barrel, government oil revenues fell in 2009 to $11.67 billion, about 12 percent less than 2008, a central bank report said.
The new investment will be used to drill more wells, including in the Al Ghubar South field, which contains reserves of a billion barrels, the official said, adding Oman hoped it would be able to announce an increase in the size of its reserves.
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