Oman’s adherence to Opec+ voluntary oil production cuts resulted in revenue from the sector falling by an average of $4.6 million a day last year.

The country’s average daily crude oil production fell 5.4 percent in 2024 to 992,600 barrels per day (bpd), figures from the National Center of Statistical Information show.

The average price of oil exports also fell, by 1.4 percent, in 2024 to $81.2 a barrel, down from $82.3 per barrel in 2023, meaning the sector was down $1.67 billion over the year. 

China was Oman’s top crude oil importer, followed by South Korea and India.

The drop in crude production was mainly attributed to Oman’s adherence to Opec+ production cuts agreed in early 2024.

Oman and fellow Opec+ members agreed to extend voluntary production cuts into the second quarter of last year.

Oman implemented an additional voluntary reduction of 42,000 bpd, effective until the end of June 2024, on top of a previously announced cut of 40,000 bpd.

Opec+, which includes members of the Organization of the Petroleum Exporting Countries and allies such as Russia, implemented production cuts in 2022 and has held back around 5.86 million bpd, or about 5.7 percent of global demand.

Production cuts had been scheduled to begin unwinding in October 2024, but this has been delayed until April 2025, as weak demand means production is unlikely to be back to full capacity until the end of 2026.

While preliminary results for the 2024 budget showed a surplus of OMR540 million ($1.4 billion), Oman is projecting a budget deficit of OMR620 million in 2025.

The Omani government announced in January that it intends to raise OMR750 million in 2025 to address the projected budget deficit and service public debt.

Oman is not the only Gulf state to be adversely impacted by the Opec+ policy. Kuwait’s economy shrank by about 4 percent year on year in the third quarter of 2024 because of Opec oil production cuts and under-performance in parts of the non-oil sector.

Earlier this week, Oman invited bids for three onshore oil and gas blocks, Block 36, Block 43A and Block 66.

Block 36 is the largest of the three concessions, spreading over a site of 18,557 square kilometres. It is located in the Ghudun basin in the central part of the Empty Quarter area.

Block 43A, which is at Buraimi, covers an area of 6,920 sq km. Block 66, covering an area of 4,898 sq km, is in the eastern part of the Empty Quarter.