Kingdom exports 1.89bn barrels oil worth SR279 billion in 8 months

Updated 30 August 2016
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Kingdom exports 1.89bn barrels oil worth SR279 billion in 8 months

RIYADH: Saudi Arabia exported nearly 1.89 billion barrels of crude oil in the first eight months of the current year with proceeds amounting to SR279 billion, a drop of 27 percent compared to figures of same period last year, local media said quoting an economic expert.
Domestic consumption during the same period was expected to reach 642 million barrels, or 25 percent of the total output, Al-Riyadh daily said quoting Fahad bin Jumaa.
Jumaa said oil prices fluctuated between $40 and $43 per barrel at the beginning of August, where Brent and West Texas oil prices stood at $42.47 and $41.75, respectively, on Aug 10.
However, oil prices sharply rose following statements from Saudi Energy and Mineral Resources Minister Khalid Al-Falih on the possible freeze (stabilization) of oil production by the OPEC officials in their Algiers meeting on Sept. 26-28, he said.
Accordingly, Brent and West Texas oil prices rose by 21 percent and 18 percent to $50.88 and $49.11, respectively, on Aug 19. Later, oil prices registered a marginal drop to $50 for Brent and $47.31 for West Texas, Jumaa added.
He ruled out any stabilization of oil production in all oil producing countries with the exception of Saudi Arabia, adding that a production freeze will not lead to a price rise with the existence of the glut in oil supplies.
The oil expert expects that oil producing countries of high costs will increase their production with improvement in prices and then go back to the previous situation. Therefore, it is better to maximize the market share for the Kingdom and other OPEC members, he said.
OPEC sees the balance of supply and demand for its members in 2016 at 31.9 million barrels per day, with an increase of 1.9 million barrels compared to the previous year. It said demand on OPEC oil is expected to rise to 33 million barrels a day in 2017.
On July 18, the executive board of the International Monetary Fund (IMF) predicted a slow growth rate of fixed gross domestic product (GDP) at 1.2 percent in 2016, but poised to grow to 2 percent in 2017. Therefore, the Kingdom’s budget deficit is expected to drop by 13 percent of the GDP with the increase of non-oil revenues and cutbacks in spending, he added.


Oman signs exploration agreements with Occidental Petroleum

Updated 16 December 2018
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Oman signs exploration agreements with Occidental Petroleum

  • Oil Minister Mohammed bin Hamad Al-Rumhi signed the agreement covering concession 51 with Occidental Oman

DUBAI: Oman signed on Sunday two agreements giving a unit of Occidental Petroleum the rights to explore for oil and natural gas in concessions 51 and 65, the oil ministry of the sultanate said in a tweet.
Oil Minister Mohammed bin Hamad Al-Rumhi signed the agreement covering concession 51 with Occidental Oman and the agreement on concession 65 with Occidental Oman and Oman Oil Company Exploration and Production, a unit of state-owned Oman Oil Co, the tweet said.
Concession 51 covers 10,133 square kilometers (3,912.37 square miles) and concession 65 covers 1,230 square kilometers (474.91 square miles), Omani state TV said in a report.
The agreement provides for Occidental to spend $14 million on exploration operations in concession 51 in the initial three-year phase of the contract, Salman Al-Shehhi, the oil ministry’s director of investment, told state TV.
Oman’s oil output is about 995,000 barrels per day. The sultanate is not a member of the Organization of Petroleum Exporting Countries but it took part in an agreement reached by OPEC and other exporters earlier this month to reduce global supply in order to bolster oil prices.