Oil and gas revenues in the Sultanate of Oman achieve a historic jump within 3 months - Energy

Oil and gas revenues increased in the Sultanate of Oman, by the end of the first quarter of the fiscal year, as oil revenues increased by 70.2%, while the increase in gas revenues amounted to 124.4%.

Oil revenues in the Sultanate of Oman recorded about 1.565 billion riyals (about 4 billion US dollars), compared to the same period in 2021, while gas revenues recorded about 454 million riyals (one billion and 180 million dollars).

And oil and gas revenues in the Sultanate of Oman contributed to the state’s general budget achieving a financial surplus of 357 million Omani riyals ($927.33 million) by the end of the first quarter of the current fiscal year.

Oil and gas revenue

Sultanate of Oman-
Oil storage center in Ras Markaz, Sultanate of Oman

The Ministry of Finance attributed the reasons for the rise in public revenues during the first three months of this year to the rise in net oil and gas revenues in the Sultanate of Oman at the end of the first quarter.

This is due, according to the statement, to the increase in the average price of oil achieved to about 78 dollars per barrel, and the increase in the average production to about one million and 25 thousand barrels per day, compared to the price achieved during the same period in 2021, which amounted to 45 dollars, with an average production of about 952 thousand barrels per day.

Gas revenues also increased by about 454 million Omani riyals, or 124.4%, compared to the same period in 2021, due to the rise in gas prices and the increase in production.

Various tax revenue

In addition to the increase in oil and gas revenues in the Sultanate of Oman, commercial revenues increased by 23.7%, compared to the same period in 2021, as a result of the start of collection of value-added tax revenues by about 69 million riyals, and the excise tax by about 24 million riyals, in addition to improving the processes of supplying government revenues.

Total public spending until the end of the first quarter of this year amounted to about two billion and 668 million riyals, registering an increase of 3.8% over the actual expenditure for the same period last year.

Ministries and civil units also recorded consistency in the rate of spending during the first quarter, compared to the same period in 2021, while spending on the public debt servicing item – designated for paying interest on loans – amounted to about 291 million riyals.

Ministries and support expenses

Oil production and refineries in the Sultanate of Oman - refineries of the Sultanate of Oman - oil revenues
An oil refinery in the Sultanate of Oman – archive

The percentage of development expenditures for ministries and civil units increased by 130.8%, to reach about 150 million riyals, compared to the end of the first quarter of 2021, as the exchange rate constituted 13.6% of the total development liquidity allocated for 2022, amounting to one billion and 100 million riyals.

Expenditure on contributions and other expenditures in the Sultanate of Oman amounted to about 179 million riyals, 50 million riyals of which were allocated to the provision for debt repayment.

The Sultanate of Oman subsidized petroleum products by about 67 million riyals, after the decision last November to fix the prices of vehicle fuel according to the average month of October, with a maximum, so that the government bears the differences resulting from any increase in oil prices until the end of 2022.

(Omani Rial = 2.6 US dollars)

deficit last year

The Sultanate of Oman’s achievement of a financial surplus at the end of the first quarter of this year is an achievement, compared to recording a financial deficit of 751 million riyals (one billion and 950 million dollars) in the same period of 2021.

According to the Ministry of Finance bulletin, the Sultanate of Oman paid by the end of the first quarter of this year about 146.4 million riyals, of dues paid to the private sector received through the financial system and completed for the documentary cycle.

The new financial surplus will be directed to stimulating economic recovery and increasing spending on priority development projects, in addition to reducing the level of indebtedness and managing its risks, according to what the Oman News Agency reported on the monthly bulletin of the Ministry of Finance.

According to the monthly bulletin, public revenues in the Sultanate of Oman witnessed until the end of the first quarter of 2022, an increase of 66.3%, to record about 3 billion and 25 million Omani riyals (7 billion and 860 million dollars), compared to revenues for the same period of 2021, which amounted to One billion and 819 million riyals ($4.72 billion).

In its report, issued last April, the World Bank had expected the Omani economy to recover, in light of the continuing measures to ease Corona restrictions, in addition to improving oil prices and production.

The GDP is expected to achieve a growth of about 5.6%, supported by the growth of oil and gas revenues in the Sultanate of Oman by more than 8% in the oil sector, and 2% in the non-oil sector during the current year.

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