Oman says it will cut oil output 23% in May and June

Dubai — Oman's Oil and Gas Ministry said Tuesday it will reduce oil production by 23% in May and June to comply with the OPEC+ cuts agreed to on Sunday.

The ministry also stated the cuts would continue at different volumes through the end of the agreement in April 2022, according to the document seen by S&P Global Platts.

The drop is equivalent to Oman cutting 201,000 b/d for the two months. Semi state-owned Petroleum Development Oman (PDO) is understood to be shouldering the bulk of the cuts. It currently produces 630,000 b/d of oil and 90,000-100,000 b/d of condensate. Condensates are excluded from the new cuts.

OPEC and allies agreed Sunday to reduce production by 9.7 million b/d in May and June, followed by a 7.7 million b/d drop in 2H2020 and 5.8 million b/d cut from January 1, 2021 to April 30, 2022. The agreement is intended to counteract plummeting demand caused by the coronavirus pandemic.

Oman is the Middle East's biggest crude oil producer that is not part of OPEC. Under the new OPEC+ agreement, the sultanate's quota stands at 680,000 b/d for May and June.

Oman's total production was 955,500 b/d in February.

Under the previous OPEC+ agreement that expired in March, Oman's quota was 961,000 b/d.