Oman’s GDP at market price during January to June 2012 rose to US$ 39.37 billion as compared to US$ 33.88 billion during the corresponding period in 2011.
Structure of GDP
Sl No.
Activity/ Sector
Share
1
Petroleum Sector
52%
2
Wholesale & retail trade
8%
3
Construction
4%
4
Public Administration & Defence
6%
5
Other activities
30%
Total
100%
Oil & Gas Sector
Oil production during January to November 2012 rose to 307 million barrels from 295 million barrels during the corresponding period in 2011. China, Thailand, Japan, South Korea, Taiwan, Singapore and India were the main destinations for Omani oil exports. During January to November 2012 gas production rose to 34,476 MNSCM from 31,875 MNSCM during the same period in 2011.
Export of Crude Oil to Major Countries (Jan-Nov, 2012)
Export of Crude oil by major countries
Year 2011 (000) BBL
Year 2012 (000) BBL
Total (End- Nov)
Nov Oct Sep
2011 2012
Japan
27546.2
2915.3 1521.6 1537
24976.7 35788.5
South Korea
19540.8
383.2 2941.5 944.9
17357.1 10331.4
Thailand
21719.2
1431.7 2025 1529.4
19628.8 17590.2
China
122757.5
10630 13343 13328
110938.4 126280
Taiwan
9628.1
4899.7 2955.8 2979.8
8009.8 32364.5
India
32134.0
571.2 629.1 00
31133 4369
Singapore
9608.2
1450.5 2574 1550.9
8358.8 17326.6
Others
23494.3
1291.6 - 621.2
22358.6 9049.8
Total Exports
266428.2
23573 25989.6 22490.7
242761.4 253100
Latest Trade Figures
Non–Oil trade exchange by Major Countries (Figures in US$ million; Source: Omani Ministry of National Economy)
Jan-August Total (Jan-August)
Change (12/11) in % age 2012 2011 2011
A) Non-Oil Omani Exports 14.6 5644.9
4926.6 7856 UAE 24.2 940 757 1165.76 India46.89036151069.67 China -8.7 541 593 859.36 United States 98.2 369 186 288.79 Saudi Arabia 21.3 416 343 620.56 Others 1.7 2475 2433 3851.33
26.1 18977 15047 23521.86 UAE 11.0 4691 4225 6449.87 Japan 409 2639 1873 2973.3 United States 25.6 1149 915 1387.46 China 37.6 998 725 1089.87 India42.39426621176.89 Others 28.7 8558 6647 10444.69
Bilateral Trade
(Figures in US$ million; Source: Omani Ministry of National Economy; figures available for 2012 are from Jan-Aug, 2012
Year
Total Export to India
Total Import from India
Total trade
Non oil Export
Re-Export
Oil & Gas Export
Total Export
2012
903
NA
479.2
1382.2
942
2324.2
2011
1070
NA
3165
4375
1133
5508
2010
837.65
122.66
1678
2638.31
890.96
3529.27
2009
685
57
1524
2413
1048
3461
2008
641
26
283
950
1038
1988
2007
456
25
280
761
1036
1797
Foreign Trade
(Figures in US$ million; figures available for 2012 are from Jan-Aug, 2012)
Year
Imports
India’s Share
%age
Export
India’s Share
%age
2012
18977
942
4.96
33757
1382.2
4.1
2011
23522
1133
4.8
46897
4375
9.3
2010
19691.77
890.96
4.5
11318
2638.31
23.3%
2009
17778
1048
5.9
27537
2413
8.2
2008
22312
1038
4.7
37563
950
2.5
2007
15914
1036
6.5
24546
761
3.1
Source: Omani Ministry of National Economy
Economic & Commercial Developments
Sultanate’s oil production stands at 933,177 bpd in Dec, 2012
The Sultanate’scrude oil and condensates production declined 0.04% to 28,928,476 barrels or 933,177 barrels per day in December 2012 compared to the previous month. The country’s oil exports stood at 25,091,284 barrels or 809,396 barrels per day during the month, according to the Ministry of Oil & Gas’s report.
HSBC completed OIB integration
As per Ewan Stirling, CEO of HSBC Bank Oman on December 3, HSBC Bank Oman has successfully completed the system integration operation with HSBC Middle East Ltd in the Sultanate of Oman following the signing of the merger agreement with Oman International Bank in June, 2012.
Oman to award major Duqm gas pipe contract inQ1,2013
Yousuf al Ojaili, CEO, Oman Gas Company (OGC) announced on December 3, 2012 that Oman Government will soon be awarding a major contract to supply 36-inch steel pipes for building a 250-km long pipeline to transport natural gas to industries for Duqm free zone. He was speaking to the media on the sidelines of 8th annual “Gas Arabia Summit” in Muscat that there are several international firms bidding for the contract and the evaluation of bids has started in December, 2013
Decision on development of Khazzan Gas field with BP
Nasser bin Khamis al Jashmi, Undersecretary at the Ministry of Oil & Gas announced on December 3, 2012 that the Oman Government and British Petroleum (BP) are likely to make a joint decision soon on the full development of the Khazzan and Makarem gas fields in the Sultanate for fulfilling the existing commitments and increasing demand.
Duqm Port deal signed
As per the local media on December 16, the Special Economic Zone, Duqm signed an agreement with Consortium of Antwerp Port (CAP) and Port of Duqm Company SAOC (PDC) for the concession of Duqm sea port. The total investment of thirty-two development projects in Duqm economic zone, which are under different stages of evaluation, tendering, implementation and completion, is estimated at RO 4.575 billion.
Synergy opened plant in Sumail
Under the patronage of Nasser bin Khamis Al Jashmi, Undersecretary of the Ministry of Oil & Gas, the Majus Synergy Petroleum International launched its operation on December 17th for producing the highest quality vacuum insulated pipes for the oil & gas sector in the Sultanate. The pipes are generally used in transport steam and hot oil. The project will help to boost national economy through innovation and investment in Wilayat of Sumail.
Oil output up 11%
According to the statistical bulletin published by the National Centre for Statistics and Data (NCSD), the quantity of oil used by Oman Oil Refineries and Petroleum Industries Company (Orpic) during the first nine months of this year stood at 61,038,800 barrels compared to 54,964,100 barrels during same period in 2011, marking an increase of 11.1 per cent. The Sultanate’s crude oil production rose 0.75 per cent to 28.01 million barrels, or 933,509 barrels per day, in November 2012 compared with October.
Important tender for Salalah Independent power project-2 (IPP) floated
The state-owned Oman Power and Water Procurement Company (OPWP) floated a tender to pre-qualify companies for developing an independent power project (IPP) with a generation capacity in the region of 300MW-400MW at Raysut in Salalah. The pre-qualification process will be completed by May 2013. The qualified firms will submit their bids for developing Salalah IPP 2 and for taking over the existing plant of Dhofar Power Company (DPC). The successful bidder will have to take over and operate the existing 248MW power project of the state-owned DPC, which will be part of the proposed concession agreement.
Exports to GCC States at RO 3.4 bn
The total trade volume between Oman and GCC states by the end of 2011 reached RO 3.4 billion. Of this, the UAE ranked first with RO 2.6 billion, followed by Saudi Arabia RO 522 million, Kuwait RO 147 million, Qatar RO 99.9 million and Bahrain RO 92.5 million.
CBO announced tight Islamic banking law
The Central Bank of Oman (CBO) announced on December 22 the regulation of Islamic banking and its window operations for launching their Sharia-compliant products. The highlights of the Islamic banking regulation include AAOIFI (Accounting and Auditing Organisation for Islamic Financial Institutions) standard for accounting, a five-member Sharia board, no permission for commodity, separate branches for window operation, 12 per cent capital adequacy with a minimum capital of RO 10 million for window operation and a clear-cut segregation of funds, accounting, information technology, compliance and marketing between Islamic and non-Islamic lines of business.
HM Cup Award for Best Factories-2012 presented
On December 30, His Majesty’s Cup Award for the Best Five Factories—2012 was distributed by Sheikh Abdulmalik bin Abdullah bin Ali Al Khalili, Minister of Justice. The five winners are Salalah Mills Co SAOG, Europoles Middle East Co LLC, Gulf Stone Co LLC, Sweets of Oman Co LLC, and Oasis Water Co LLC. It may be recalled that the Ministry of Commerce & Industry has been organising this Best Five Factories competition programme since 1991 as an embodiment for His Majesty the Sultan’s declaration of 1991 and 1992 as the two years for industry.
PEIE to invest RO 117 m in three industrial estates
On December 30, Hilal bin Hamed al Hasani, Chief Executive Officer the Public Establishment for Industrial Estates (PEIE) said that PEIE is investing RO117 million in the next three years for expanding three industrial estates Rusayl, Sohar and Nizwa in a move to meet the growing demand for industrial plots from entrepreneurs. In addition, plans are afoot to set up industrial estates in Samayil, Ibri, Musandam and in the Sharqia region also.
JV company proposals’ to be cleared only in certain sectors
Eng. Ali bin Masoud Al Sunaidi, Minister of Commerce & Industry said that the Ministry of Commerce & Industry has started scrutinizing proposals for clearance on basis of offering job opportunities for locals and certain key industries such as information technology, energy services, and infrastructure related projects. Minister said the Government will accept only proposals that are serious, especially those projects that bring in true value addition, until the study is complete.
Trade & Investment-related news
UK:
On December 2,Mosaic International, one of the leading healthcare solutions providers in Oman, in association with Summit Medical Group, UK based medical products manufacturing company, principally engaged in the supply of single use sterile medical devices to the global market, launched their range of specialist orthopedic products in the Sultanate.
Russia:
As per the local media on December 3, Capitoline Holdings Ltd, a subsidiary of TMK, a prominent Russian steel company, has acquired a 30 per cent stake in Gulf International Pipe Industry (GIPI), the Sohar based manufacturer of high pressure ERW carbon steel pipe.
South Korea:
Oman Oil Company (OOC) and LG International (LGI) have signed a Joint Development Agreement for implementation of a purified terephthalic acid (PTA) and polyethylene terephthalate (PET) project in Sohar Port. The new company will be owned 70% by OOC and 30% by LG International. A new joint venture (JV) company will be established to carry out the project in accordance with international standards to produce, in two phases, a total of 1.1 million tonnes of PTA and 500,000 tonnes of PET per annum. The project is estimated to cost $ 850 million and to be operational by the end of 2016.
Brunei:
As per the local media in December 4, 2012, Oman Brunei Investment Company (OBIC) has acquired a majority share of Renna Mobile, an Omani-based mobile virtual network operator (MVNO), by injecting capital into the company. The capital is earmarked for Renna Mobile's further expansion plans.
Portugal:
On December 15, Oman Chamber of Commerce & Industry (OCCI) signed a memorandum of understanding (MoU) with the Portuguese Trade & Investment Agency (AICEP) concerning strengthening economic relations between the two countries through the promotion of trade, industry and investment projects. The MoU included co-operation in organising conferences, exhibitions, seminars and events that aim at strengthening trade, economic and investment ties, facilitate and encourage the steps being taken to strengthen co-operation between the two countries in the fields of industry, trade, investment and the transfer of knowledge and training.
Sudan:
On December 15, Oman and Sudan signed a memorandum of understanding (MoU) for co-operation between the two countries in agriculture and fisheries sectors. The signing of the MoU comes within the framework of mutual co-operation between the Sultanate and Sudan in the fields of agriculture, livestock and food security.
Tanzania:
Following on from the recent state visit by the Tanzanian President, Jakaya Mrisho Kikwete, where a number of agreements were signed and bilateral relations between the Sultanate and Tanzania were further cemented, a 3-day Tanzanian Diaspora Meeting that seeks to bolster and increase Investment, Trade and Partnership, concluded on a high note at Muscat on December 22, The 48-member high profile delegation led by Ambassador Bertha E Semu-Somi, Director, Diaspora Engagement Department said that reflects Oman’s important position as one of Tanzania’s 10 top importers.
Saudi Arabia:
An Omani products exhibition was organized in Saudi Arabia from December 24-27 at Riyadh International Convention and Exhibition Centre to showcase Omani products at the global level. The goods displayed included foodstuff, dairy products, industrial products, building material, furniture, steel, marbles, ceramics, electrical goods, pharmaceuticals and Omani halwa etc.
Canada:
Oman Oil Company (OOC) has announced its first venture in Canada through an investment in BlackRock Metals Inc, a Quebec-based mining company. The strategic investment will be for an equity stake in the company of up to a maximum of 25% upon the achievement of certain project milestones and provides for OOC off-take rights subject to finalisation of negotiation of off-take terms.
Following the Canadian government’s decision to impose antidumping duty on pipe imports from Al Jazeera Steel Products Co, the Omani company has decided not to export steel pipes to Canada.
Bilateral:
A four member team led by Undersecretary, H.E Eng. Ahmed bin Hasan Al-Dheeb visited India from December 7-9 to present Omani case for waiving of antidumping duties by India on imports of Omani Polypropylene. The team also called on Minister of State in the Ministry of Commerce & Industry and Minister of State for External Affairs.
As per the local media on December 15, Omifco has increased the price of urea by $17-18 per tonnes to $150-160 per tonne in order to compensate for a hike in natural gas price by Omani Government.
On January 22, Bahwan Cyber Tek (BCT) Group signed an MOU with Indian School of Business (ISB), Hyderabad to provide executive education courses in Oman.
This issues with the approval of the Ambassador
Source: Commercial Section, Embassy of India, Muscat
