Oman’s Oil Industry Prepared to Brave Strong Headwinds due to Low Price

Published Date : Mar 04, 2015

Oman’s oil industry is going to face a tough year this year and beyond 2015. It will be a difficult year for both producers and suppliers as oil prices show no signs of recovery, said the delegates at the oil seminar on Tuesday.

The experts and officials harmonized on the fact that there are challenges faced by the industry in the local energy sector and that must resolve. However, they were warned that producers and contractors must work in agreement to brave the headwinds of the low prices. 

Although, it is a crisis situation at present, it is made very clear to all companies in the oil industry to seek for opportunities in the tough times. If there were good times once then acceptance has to come for the challenge that the oil industry faces now. The Oil and Gases undersecretary informed that things need to be seen differently and added that it was a deciding time for the industry to test the relation between the contractors and the government in the oil industry. The relation was tested whether both the parties are cutting corners or taking shortcuts. Maintaining some professionalism to overcome the low prices challenges will be much needed, expressed Al Aufi. 

However, the biggest concern was the job security in the country’s oil industry. In case if Omani’s lose their jobs, the contractors must tell the organization so that they can work together and be informed. 

The Managing Director of PDO said that this year would be difficult for the oil industry in Oman but contractors were asked to remain positive. Oil prices costing $50 or $60 per barrel is difficult but will pick up a rapid pace. PDO works up to the task with Enhance Oil Recovery programme. 

Many other oil producers in the country also expressed similar sentiments. A local subsidiary oil company has already taken the measures to counterbalance the lower oil prices situation. They are planning to sustain oil productions and be efficient in reducing costs.