Gas production is set to overtake crude in Oman by 2023 due to a surge in the output of cleaner fuel, according to a study. The sultanate is one of the smaller hydrocarbon producers in the Gulf, with some of the highest breakeven prices for crude. Oman has sparse gas resources compared to its regional peers and recently undertook efforts to boost output by tapping into some of its tighter reserves. BP for instance is engaged in the development of Oman’s massive tight gas field at Khazzan, from where production is expected to reach 1.5bn cubic feet per day, when completed. The gas field, which will see an estimated USD16bn (Dh59bn) in investment, currently produces 1bn cf/d of gas and around 35,000 barrels per day of condensate.
 
Oman’s crude production meanwhile has been on the decline, largely due to its maturing fields and difficult terrain, which makes exploration and production an expensive proposition for international energy companies. Oman’s gas production meanwhile will increase by 130mn cubic metres per day, changing the overall fuel mix from 35% gas in 2015 to 50% by 2025.