Higher oil production strengthens Oman’s public finances
International ratings agency Standard & Poor’s (S&P) has affirmed its ‘A’ long-term and ‘A-1’ short-term foreign and local currency sovereign credit ratings for Oman, based on its strong fiscal position.
The country’s ratings are supported by its solid external finances and increasing wealth levels, S&P says.
“The stable outlook is based on our expectation that the high level of government assets, the expected increase in LNG exports, and the growth of the non-hydrocarbon sector will continue to mitigate concerns stemming from the volatility in oil prices and the recent years’ decline in crude oil production,” says S&P.
Oman’s oil production declined steadily from a peak of 970,000 barrels a day (b/d) in 2000, but its current enhanced oil recovery (EOR) techniques are helping to reverse the trend temporarily.
Oman produced an average of 812,500 b/d of oil in 2009 compared to 756,800 b/d in 2008, an increase of 7.4 per cent, according to data from Oman’s national economy ministry.
The ratings remain constrained by a heavy economic dependence on hydrocarbons, geopolitical tensions in the region, and in the longer term, the lack of clarity about the succession of current ruler Sultan Qaboos bin Said.
You might also like...
Ruwais LNG full EPC award expected in June
29 March 2024
PIF entity makes $1bn Lucid placement
29 March 2024
Petro Rabigh awards KBR maintenance contract
29 March 2024
Diriyah Company seeks firms for demolition work
29 March 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.