Oman says to attend non-OPEC meeting in Vienna this week

Business

09:28 | 05.12.2016

Oman says to attend non-OPEC meeting in Vienna this week

Non-OPEC Oman will attend the oil producers' meeting with OPEC in Vienna on Dec. 10, the energy minister of the Gulf sultanate said on Sunday. OPEC agreed last week to reduce output by around 1.2 million barrels per day ( bpd) beginning in January in a bid to reduce global oversupply and prop up prices.

It hopes non-OPEC countries will contribute another 600,000 bpd to the cut. Russia has said it will reduce output by around 300,000 bpd.

Omani oil and gas minister Mohammad bin Hamad al-Rumhy told reporters that non-OPEC producers' current discussions to cut between 3 and 4 percent of their oil production, is less than what Oman was ready to reduce output by. He declined to comment on how much Oman is prepared to cut output, but Oman has previously said it would be willing to cut production by 5-10 percent.

Rumhy said he expected oil prices to rise to a range of $50-$60 a barrel in 2017 after the global oil limiting supply agreement.

Oman's oil production is around 1 million bpd.

Rumhy, who is also the chairman of Petroleum Development Oman (PDO), the country's top oil and gas exploration and production company, said PDO's expected investments next year will be around $4 billion.

"Recently, we were discussing the amount PDO plans to borrow next year. It will be almost the same as this year's loan. Between $3-$5 billion," he said.
In June, PDO said it obtained a $4 billion loan from international banks, part of a rush of foreign borrowing by Oman as low oil prices strain state finances.
The five-year pre-export facility was the company's first international loan and was priced at 160 basis points over the London interbank offered rate (Libor).

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