Oman oil output surges to record 1mpd in July

Updated 16 August 2015

Oman oil output surges to record 1mpd in July

MUSCAT: Oman's crude oil and condensate production rose to more than 1 million barrels per day in July for the first time in its history, the Oil and Gas Ministry said in its monthly report.
The sultanate has been ramping up oil production despite a global supply glut that has hit oil prices, with the Gulf Arab country looking to compensates for the drop in its oil revenue.
"The average daily production rate during July exceeded the barrier of 1 million barrels for the first time in the history of Oman's oil industry," the ministry said in the report published on its website.
Total oil output was up 0.5 percent from June, producing 894,156 bpd of crude oil and 106,926 bpd of condensate.
Salim Nasser Al-Aufi, undersecretary at the Ministry of Oil and Gas, said the rise in output was mainly attributable to a drop in planned maintenance work and that he does not expect to reach the same level of production in August.
Oman's July oil exports, however, fell by 12.6 percent month on month, the ministry said, as its refineries used higher volumes of crude.
The month's crude exports reached 796,977 bpd, with all shipments going to the Asian market, while supplying 163,062 bpd to domestic refiner Oman Oil Refineries and Petroleum Industries Company.
China accounted for nearly 70 percent of total Omani crude exports in July, the ministry's report said, with Japan taking 15 percent.
Though a small non-OPEC oil producer, Oman's crude oil forms part of the benchmark price for millions of barrels per day of exports from Middle East producers to Asia.

Automechanika Riyadh opens, featuring leading global suppliers

Updated 20 min 12 sec ago

Automechanika Riyadh opens, featuring leading global suppliers

  • Saudi auto deals grew 40 percent last year with influx of female buyers

RIYADH: Leading names in the global auto services industry are out in force at Automechanika Riyadh — which opened on Monday at Al Faisaliah Hotel — vying to increase their share of a growing market expected to reach a value of $10.15 billion by 2023.

Automechanika Riyadh is the regional arm of the world’s largest trade fair, congress and event organizer, Messe Frankfurt, which has licensed the Automechanika brand to event organizer Al Harithy Company for Exhibitions (ACE) Group.

Mansour Abdullah Al-Shathri, vice chairman of the Riyadh Chamber of Commerce, inaugurated the trade event, which will run from Feb. 24-26.

It was revealed that Saudi auto deals grew approximately 40 percent last year, with female buyers accounting for between 10-15 percent of sales after the landmark decision to allow women to drive in the Kingdom for the first time.  

“International suppliers are stepping up their marketing for the resurgence in Saudi’s market, and this impacts the entire supply chain,” said Mahmut Gazi Bilikozen, show director for Automechanika Riyadh.

“While there is growth potential in the market, it is becoming a more competitive landscape and one which will also have to contend with evolving customer preferences. The conditions are ripe for new business relationships for those wishing to succeed in this transformative environment,” he added.

Zahoor Siddique, vice president of ACE, said: “Future vehicles will become more complex and challenging for the aftermarket industry. It is therefore imperative for manufacturers, local garages, technicians and mechanics to upskill and remain above the curve. 

 “Automechanika Riyadh is one such platform that can enable us to share and learn what the industry needs to unleash its potential.”

Two major US players — disc pad producer Giant Manufacturing and United Motors Mopar, the Kingdom’s sole distributor of Chrysler, Dodge, Jeep and Fiat cars — forecast a bullish market over the next few years.

Giant’s vice president, Eli Youssian, said he believed car sales in the Kingdom would grow by 9 percent annually until 2025, while United Motors District CEO Hassan Elshamarani expected another three million female drivers to be on the Kingdom’s roads by the end of the year.

Both Giant and United Motors launched new products at the show, with the former rolling out its new German-engineered Euro Premium Metallic Disc brake pads, and the latter introducing its Magneti Marelli spare parts.

The high potential of the new-look Saudi automotive landscape has also struck a major chord with South Korean suppliers.

The show’s Korean pavilion is hosting new-to-market entrants and existing suppliers all looking for business partners. With products from wiper blades to filters and air-conditioning parts to brake pads, the Korean contingent was positive about the Kingdom’s prospects.

One exhibitor, D Only Automotive, is looking to ring fence 10 percent of the Saudi brake market. “With more vehicles on the road, demand for brakes will increase, (so) we believe this is possible,” said President Jeon JaeWon.

Global research and analytics firm Aranca — Automechanika’s knowledge partner — has forecast that Saudi Arabia’s automotive spare parts and service market will grow at approximately 6 percent over the next five years to reach a value of $10.15 billion by 2023.

“The spare parts and service market for passenger cars alone is expected to eclipse $6.9 billion by 2023,” said Vishal Sanghavi, Aranca’s automotive practice head.