Oman’s budget surplus reaches RO1 billion on oil and gas revenues

Muscat – Oman’s budget surplus crossed the RO1 billion mark in the first seven months of this year, compared to a huge deficit of RO1.2 billion in the corresponding period last year, in due to a sharp increase in the sultanate’s oil and gas revenues amid higher global energy prices.

According to data released by the Ministry of Finance, total government revenue jumped 53.5% to more than RO8 billion in the period January-July 2022, from RO5.215 billion in the same period. of 2021.

“At the end of July 2022, the budget achieved a surplus of RO 1.019 billion compared to a deficit of RO 1.206 billion over the same period in 2021. This is explained by an increase in government revenue compared to government expenditure”, the ministry said. of Finance in its monthly budget performance bulletin.

Helped by high energy prices and increased hydrocarbon production, Oman’s total oil and gas revenues jumped 64.6% to RO5.883 billion in the first seven months of 2022, compared to RO 3.574 billion in January-July 2021.

While net oil revenue increased 45% to RO3.827 billion in the January-July 2022 period, gas revenue jumped 120% to RO2.056 billion in the same period, according to ministry data.

Oman’s daily average oil production remained up 9.2% at 1.042 million barrels per day for the first seven months of 2022, compared to 954,000 barrels per day recorded during the corresponding period of 2021. The Sultanate sold its crude oil at an average price of US$89. per barrel during the period January-July 2022 against an average price of 54 USD per barrel during the same period of 2021.

Government of Oman current income has also increased by more than 30% to RO2.107 billion this year from RO1.615 billion in the same period of 2021. Total current income also includes RO584 million in dividends received from Oman Investment Authority.

Spending up 8.8%

Amid rising revenues, the government has increased total public expenditure – up 8.8% – to RO6.984 billion for the first seven months of 2022, from RO6.420 billion spent during the same period of 2021.

Current expenditure rose 12.2 percent to RO5.430 billion this year from RO4.838 billion in the same period a year ago. Development spending increased by 27.7% to RO479 million in the first seven months of 2022, compared to RO375 million in the same period of 2021.

Total contributions and other expenditure (including grants) increased sharply to RO1.02 billion during this period, compared to RO462 million for the same period of 2021.

At the end of August 2022, Oman’s total public debt stood at RO18.4 billion, down by RO2.4 billion from the end of 2021, according to data released by the Ministry of Finance.

“The sultanate’s liability management exercise has reduced public debt by RO2.4 billion at the end of August 2022,” the ministry added.