Oman is preparing to slash oil output during May and June which will see the Sultanate reduce its production by 201,000 barrels per day (bbl/d), according to the Oman Observer.
This figure represents a 23% cut of total production based on October 2018 levels and is in line with OPEC+ cuts.
Petroleum Development Oman (PDO), the Sultanate’s biggest oil producer, will cut production to 453,000 bbl/d, down from 588,000 bbl/d from oilfields across its Block 6 license. Occidental Petroleum is limiting output to 88,000 bbl/d from its Mukhaizna (Block 53), 62,000 bbl/d from Block 9, and 6,000 bbl/d from Block 27. Daleel Petroleum’s output from Block 5 will be restricted to 39,000 bbl/d, down from 51,000 bbl/d. CC Energy Development (CCED), operators of Blocks 3&4, will ease production to 30,000 bbl/d, down from 38,000 bbl/d. In addition to this, three other oil producers are expected to make modest cutbacks as well.
Oman’s share of the OPEC+ production will further decline to 161,000 bbl/d for the rest of 2020, before falling to 121,000 bbl/d for the remainder of the OPEC agreement which runs till April 2022.