Oman’s condensate production rises 8.5% as oil output declines
As Oman continues to adhere to its OPEC+ commitments on oil production cuts, the sultanate has substantially increased its condensate output during 2023. Condensate production is exempt from the obligations of the OPEC+ agreement.
Oman's total condensate production during the JanuaryNovember period of 2023 rose by 8.5% to 78.1mn barrels compared to 71.9mn barrels recorded in the same period in 2022, according to data issued by the National Centre for Statistics and Information (NCSI).
Condensate is a mixture of light liquid hydrocarbons typically separated from a natural gas stream at the point of production. The OPEC+ agreement allowed NON-OPEC oil producers to exclude condensate output from their production quotas, enabling countries like Oman to increase their condensate production.
S&P Global Ratings recently said that OPEC+ related oil production cuts will slow Oman’s economic growth to approximately 1% for 2023.
‘Oman is a voluntary adherent to the OPEC+ agreement. We expect hydrocarbon sector output to remain relatively stable, with the decline in oil production mitigated by an increase in condensate and gas production. We forecast the non-hydrocarbon economy to grow by about 2%. A likely increase in hydrocarbon production should spur growth in 2024 and 2025,’ S&P said.
Oman’s crude oil production decreased by 3.9% to 272.4mn barrels in the first 11 months of 2023 compared to 283.5mn barrels in the same period last year, as indicated by NCSI data.
The sultanate’s daily average oil production (crude oil and condensates combined) decreased by 1.4% to 1.049mn barrels per day (bpd) in the January–november period of this year, down from 1.064mn bpd in the first 11 months of 2022. Daily average oil output in November reached 1.041mn bpd.
Oil exports decline
Oman’s oil exports saw a 3.1% year-on-year decline in the first 11 months of 2023, primarily due to a significant drop in shipments to India.
The sultanate exported a total of 283.4mn barrels of oil in the first 11 months of 2023, com
pared to 292.4mn barrels in the corresponding period last year, according to NCSI data.
Oman’s crude exports to India plummeted by more than 90% to just 2.7mn barrels this year, down from 29.9mn barrels in the corresponding period of 2022. India’s crude oil imports from traditional Middle Eastern suppliers significantly declined this year, largely due to increased imports of Russian oil.
However, the sultanate’s exports to China, the largest buyer of Oman crude, increased by 10.1% to 260.6mn barrels in the first 11 months of 2023, up from 236.7mn in the same period last year. As the single largest buyer of Oman’s crude, China accounted for nearly 92% of total oil shipments from January to November 2023.
Shipments to South Korea and Japan witnessed sharp declines of 68% and 16.9% this year, respectively.
The average price at which Oman sold its crude during the first 11 months of 2023 was 14.8% lower at $81.6 per barrel compared with $95.8 per barrel in the same period of 2022.
Oman’s crude oil production decreased by 3.9% to 272.4mn barrels in the first 11 months of 2023 compared to 283.5mn barrels in the same period of 2022