Oman, the biggest Middle East oil producer outside OPEC, plans to base its 2022 budget on an oil price of $50/b, compared with $45/b in 2021, the finance ministry said on Twitter on Dec. 12.
The oil price estimate will allow Oman to cope with oil price volatility and reflects appropriate fiscal deficit estimates that can be financed, the ministry said. Dated Brent settled at $74.315/b on Dec. 10.
Oman will produce 1.055 million b/d of crude oil in 2022, up from 960,000 b/d projected for the 2021 budget, it said. Revenue will be Rials 10.58 billion ($27.6 billion) in 2022, up by 22.5% from Rials 8.64 billion in the 2021 budget.
The ministry estimates that the country achieved a 56% increase in net oil revenue and a 40% uptick in natural gas income in 2021 from a year earlier.
The 2021 actual average oil price is expected to be $61/b, a 35% increase from the budgeted projection of $45/b, while actual average oil production is estimated to reach 957,000 b/d vs the budgeted 960,000 b/d, the ministry said.
Oman's fiscal breakeven oil price needed to balance its 2022 budget will be $67/b, compared with $74/b in 2021, the Institute of International Finance said in an Oct. 11 report.