Oman counters oil decline narrative

July 31, 2013 at 8:40 AM   |   0 comments

MUSCAT, Oman, July 31 (UPI) -- The amount of oil extracted from Oman represents about 30 percent of the country's total proven reserves, a research council said.

Taimoor bin Saeed al-Saeed, assistant secretary-general at a government research council, said rumors of Oman's oil decline were unfounded. He said Tuesday his research team found the total amount of oil extracted in the country accounts for approximately 30 percent of the total stockpile, the Times of Oman reports.

News website Emirates 24/7 reported Wednesday the government said its federal revenues declined this year despite an increase in oil output. The country increased its output to 929,000 barrels of oil per day during the first five months of 2012, compared to 897,700 bpd year-on-year.

The Times of Oman reported "some Arabic daily newspapers" quoted the research director as saying geological constraints prohibited oil production from some national areas.

Oman controls nearly 5 billion barrels of proven oil reserves. It aims to increase spending under a five-year fiscal program through 2014 to increase crude oil output.

The analytical division of the U.S. Energy Department said oil production from Oman is costly because of its geology.

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