OREANDA-NEWS. On the back of higher demand from China, Oman fetched RO 6.203 billion from its oil and gas exports by the end of May this year against RO 5.708 billion in the corresponding period last year. At the same time, the country’s oil production between January and August in 2013 averaged 937,000 barrel per day, an uptick of around 29,000 compared to the same period last year. According to data available from the National Centre for Statistics and Information, crude oil exports amounted to RO 5.414 billion, while refined oil brought a revenue of RO 98.4 million and liquefied natural gas RO 690.6 million. Meanwhile, revenue from non-oil exports amounted to RO 1.567 billion in the period up to May 2013 against RO 1.284 billion the same period last year. Demand for oil from China remains robust with the country taking around 50 to 60 per cent of total exports through 2013.

According to Oil & Gas Journal, Oman currently exports LNG from two liquefaction facilities, although rising domestic demand for natural gas could limit the volumes available for export in the future. The country uses a significant portion of its natural gas production in oil extraction, re-injecting 22 per cent of its dry production in 2012, says a report by IHS Global Insight. According to the Journal, Oman had 5.5 billion barrels of proved oil reserves as of January 2013. Oman’s only export crude stream is the Oman blend, which is a medium-light and sour crude. After declining for several years in the early 2000s, enhanced oil recovery techniques (EOR), such as steam injection and miscible injection, have been the key drivers of Oman’s rebounding oil production since 2007.

Oman’s 5.5 billion barrels of proved oil reserves rank 7th in the Middle East, and 21st in the world, and, similarly, the country’s crude oil production ranks 7th in the Middle East and 22nd in the world. Oman is the largest oil producer in the Middle East that is not a member of Opec. Oman aims to capitalise on its strategic location on the Arabian Peninsula by expanding its refining and storage sectors. Plans to develop a major bunkering and storage terminal are moving forward, including Duqm, and the facility’s location outside the Strait of Hormuz could make it an attractive option for international crude shippers.