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Tue 3 Nov 2009 08:06 AM

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Oman set to up oil output to 900,000 bpd in 2010

Oil minister announces production target, says investments beginning to pay off.

Non-OPEC producer Oman's oil production is expected to rise up to 900,000 barrels per day (bpd) in 2010, the oil minister has announced.

Oman is investing heavily in oil production to replace ageing fields and in September, it hit its target of producing an average of 800,000 barrels per day from 757,000 bpd in 2008.

Oman is a small producer, but its crude is used to set the price for around 12 million bpd of crude exports to Asia from some of the largest exporters in the world in the Gulf.

"We expect our production to be between 850,000 to 900,000 barrels per day by the end of 2010 due to increased output from all producers in Oman," Mohammad Al-Rumhy, Oman's oil minister, told Reuters.

"Our investments in the oil sector is beginning to pay off," Rumhy said.

Oman spent 468.4 million rials ($1.22 billion) to boost oil production in the first eight months of 2009, 17 percent more than the same period last year.

Oman's oil output peaked at 956,000 bpd in 2001. (Reuters)

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