Omani Ministry of Oil and Gas has set an output limit on producers in Oman, delivering on the Organization for Petroleum Exporting Countries’ (OPEC) pact set in Vienna 2016, Times of Oman reported.
Under-Secretary of the Ministry of Oil and Gas, Salim bin Nasser al Aufi, said that the 45,000b/d output cut will be shared by the Sultanate’s oil producers on a pro-rate basis. It will be apportioned on an equitable basis corresponding to the average production of each company. Thus, majority stated-owned Petroleum Development Oman (PDO) will shoulder the lion’s share of the cut, according to Hellenic Shipping News.
Moreover, a spokesperson from PDO, which extracts more than two thirds of crude oil in Oman, confirmed that the company has reduced production across its southern and northern fields consistent with assigned production ceilings from the ministry.
At the meeting of non-Opec producers held in Vienna early December, Oman pledged to slash around 45,000b/d from a peak production of around 1.015mb/d corresponding to its October daily average. This limits the Sultanate’s production to 970,000b/d effective from January 1, 2017 in line with the global deal. While the unprecedented compliance rate by OPEC members has sent oil prices on an upward spiral despite American oil producers offsetting most gains by bolstering production activities for a tenth straight week according to data by Baker Hughes.