Oman sees higher income but lower oil output in 2005
Posted: 05 January 2005
Oman expects strong oil prices to boost its income and ease its budget deficit this year despite a sharp decline in its production.
Releasing its state budget for the 2005 fiscal year, the Sultanate forecast oil prices at around $23 a barrel, nearly $five above projections in its five-year development plan.
It predicted oil income at around $2.04 billion Omani rials ($5.3 billion) this year, accounting for nearly 65 percent of the total projected revenues.
Oil production was put at an average 753,000 barrels per day in 2005, sharply lower than the 909,000 bpd forecast in the sixth development plan. Officials said the decline followed a sharp drop in the production of state-run Petroleum Development Oman.
Total income was forecast at around 3.14 billion OR ($8.16 billion), higher than the 2004 projected revenues by around 115 million OR ($299 million).
“ We forecast higher revenues this year because of strong oil prices….the increase will be used to finance part of the deficit instead of relying on foreign borrowing,” said Ahmed bin Abdul Nabi Makki, Oman ’s Minister of National Economy.
Posted by Editor Pipeline Magazine
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