Oman maintains crude export volumes despite Duqm reaching capacity

Quantum Commodity Intelligence – Exports of Oman Blend crude have been maintained during the early part of 2024 despite the new Duqm refinery reaching full capacity in February, according to data released by the National Center for Statistics and Information (NCSI).

Oman exported 52.43 million barrels in January–February, up more than 5% versus 49.713 million barrels in the same period for 2023.

In barrel-per-day terms, Oman exported 874,000 bpd in the first two months of this year, up from 843,000 bpd in the same period during 2023.

The export figures indicate that Oman's new Duqm refinery is using very little of the country's crude, even after having reached capacity of 230,000 bpd in early 2024.

According to previous reports, Duqm partner Kuwait will provide 65% of the feedstock for the 230,000 bpd plant, while Oman will supply the other 35%.

However, there is no obligation for either National Oil Company to supply crude from its own production, with both parties free to source competitively-priced crude from the region or beyond.

Oman is the delivery grade for the DME Oman futures contract, while the grade also typically sets the price of Platts Dubai as the lowest-priced grade in the 'Dubai basket', which also includes Upper Zakum, Al Shaheen, Dubai and Murban.

The NCSI said Oman's total oil production decreased 4.3% to 60.073 million barrels during the first two months of 2024, or around 1 million barrels per day, which was 4.3% down on the year, with Oman trimming output in accordance with its OPEC+ quota.

According to production surveys, Oman pumped around 770,000 bpd of crude in January and February, but traders said that Oman Blend contains around 25% condensate, which helps to reduce the density and sulfur content of the export grade.

The medium sour Oman Blend is particularly popular among Chinese refiners, with 80%-90% of the monthly export program typically heading for China.