“Gas is on the rise in Oman, and this transition is very timely. Oil output declines over the last two years may indicate a point of no return for Omani oil, but the country’s sliding oil production is set to be replaced by gas,” Rystad Energy analyst Aditya Saraswat said in a statement on the company’s website.
Rystad Energy estimates that by 2025 the sultanate’s oil production may decrease by an additional 200,000 barrels per day, as output from older fields continues to slump. As the new oilfield developments have failed to stabilise the country’s crude output, Oman has shifted its focus to invest in gas developments, Rystad Energy said.
This will see gas production escalate to approximately 130mn cubic meters per day by 2025, shifting Oman’s oil-gas production mix from about 35 per cent gas in 2015 to over 50 per cent in 2025, it said.
“This is a tremendous turnaround from the near-stagnant 80mn cubic meters per day of gas output from 2008 through 2016,” Saraswat said.
“Amidst rising global liquefied natural gas (LNG) demand and the increasingly lucrative domestic gas market, international players are favouring gas developments in Oman. The strengthened gas market will help gas production levels to outshine Oman’s dwindling oil production, with gas output projected to overtake oil by 2023,” Saraswat added.
Rystad Energy provides data, tools, analytics and consultancy services to the global energy industry.