Announcing this year’s line-up of new blocks, Nasser bin Khamis al Jashmi, Under-Secretary of the Ministry of Oil and Gas, said the government enjoyed significant success in attracting new investors last year, despite the downturn in international oil markets. “In 2009 we have concluded four new agreements despite the difficult economic conditions that prevailed in the market during the year,” he said. “I am pleased to announce in this connection that the number of oil and gas exploration and production operators has increased from 12 in 2000 to 22 companies by the end of 2009, operating in 32 concession areas,” he added.

Speaking at an annual media briefing hosted by Petroleum Development Oman (PDO), Al Jashmi also outlined key developments in the oil and gas sector during 2009. Average crude oil production jumped from 757,000 barrels per day (bpd) in 2008 to 812,000 bpd last year, representing an increase of 55,000 bpd. At 812,000 bpd, average daily output exceeded the target of 805,000 bpd. Output is projected to rise to 860,000 bpd during 2010, he added. On the other hand, average oil prices slumped from $101.06 per barrel in 2008 to $56.67 per barrel last year.

On the gas front, the output of associated and non-associated gas climbed slightly to 85 million cubic metres per day in 2009 from 83 million cubic metres in 2008. “In order to achieve the above production rates, the government and the oil and gas operators made major investments to execute a number of projects that have collectively contributed to the increase of production and realisation of positive results in the sector. Moreover, the government continued its efforts to attract foreign and local investments and expertise in the oil and gas sector,” he added.