Shell will help independent Gulf oil producer Oman to halt an expected decline in its crude output.
John Crocker, Shell General Manager for Oman said that Shell was assisting Petroleum Development Oman (PDO) in identifying ways of reversing the present production decline. Shell is prepared to invest money and is confident in the future of oil recovery in Oman.
Crude output by PDO, in which Shell holds a 34 percent stake, is expected to decline by more than five percent due to depletion of some of its oilfields, industry sources said.
PDO has now revised its expected average production for 2002 to 770,000 barrels per day (bpd) instead of its earlier target of 815,000 bpd. PDO produces about 95 percent of the non-Opec country's total output.
Oman has substantial reserves of oil in the ground estimated at 6 billion barrels. Oman also has proven gas reserves at around 660 million cubic metres (22 trillion cubic feet), with potential reserves more than double that figure. But certainly no one is going to relax until the present output drop has been halted and reversed.
Like in Gulf Arab states, oil makes up 70 percent of the Oman's national income. ©
The choice of the city of Helsinki is not incidental as the capital of Finland had hosted US-Soviet negotiations on the limitation of nuclear stockpiles in 1969