Muscat's oil plans in disarray
The sultanate’s upstream development projects have taken short and longer-term hits
The Omani government is not having a good year oil-wise. The new Opec+ agreement to cut 9.7mn bl/d of production from 1 May requires the adherents, including Muscat, to reduce output by nearly a quarter. The heavily oil revenue-dependent sultanate’s original 2020 budget was based on an average price of $58/bl and more than 900,000bl/d production—which, even then, would have entailed a $6.5bn deficit. With average prices in April being less than half of the government’s assumptions, the new requirement to also slash sales volumes rubs salt in a painful fiscal wound. The impact of both will mean deep spending cuts. And the twin tracks of the country’s upstream policy—to stanch declines at agei
Also in this section
28 January 2026
The alliance looks to bolster market management credibility by bringing greater clarity and unity to output cuts and producer capacity later in 2026
23 January 2026
A strategic pivot away from Russian crude in recent weeks tees up the possibility of improved US-India trade relations
23 January 2026
The signing of a deal with a TotalEnergies-led consortium to explore for gas in a block adjoining Israel’s maritime area may breathe new life into the country’s gas ambitions
22 January 2026
As Saudi Arabia pushes mining as a new pillar of its economy, Saudi Aramco is positioning itself at the intersection of hydrocarbons, minerals and industrial policy
