Falling crude prices will not impact capital expenditure (capex) in Oman’s oil and gas sector in 2015 but could affect spending in future years, according to the sultanate’s Oil & Gas Ministry.

Salim al-Aufi, undersecretary at the ministry, told reporters in Muscat on 18 November that the country’s current projects programme would go ahead as planned.

“For the next year we know [lower oil prices] are not going to impact our programme, because we already have set what exactly we are going to do,” Al-Aufi was reported as saying in Muscat Daily. “Beyond 2015, it will depend on how oil prices trend.”

He added that the current programme of projects “will probably be the last programme to be impacted before we start seriously thinking about cutting down our activities”, speaking at a book launch ceremony for Oman’s largest producer, Petroleum Development Oman (PDO).

Oman is targeting oil production of 980,000 barrels a day (b/d) in 2015 against this year’s target of 950,000 b/d, according to Al-Aufi. Oman oil production declined significantly between 2001 and 2007, but has since risen to previous peaks driven by enhanced oil recovery (EOR) projects.

At a separate event in Muscat, Oil & Gas Minister Mohammed al-Rumhi said production would be more than 1 million b/d for some of 2015 and that current production is around 990,000 b/d. The sultanate will attempt to keep production at this level for the next 10-15 years, he said.

Speaking about declining oil prices, Al-Rumhi warned that it would be a big challenge to maintain general reserve fund, expenses and programmes in the 2015 budget, especially given fears of a lower crude price in coming years, Times of Oman reported.

PDO’s CEO Raoul Restucci, speaking at the book launch, said the company’s projects would go ahead on schedule, adding that “we will tighten our belts like everyone else”.

Restucci expects capex to average $1.5bn-$2bn a year going forward, but said some special task pilot projects might be slowed down if lower oil prices continue.