Oman posts $2bn surplus in first half on high oil, gas

Oman recorded a budget surplus of OMR784m ($2bn) in the first half, driven by higher sales for oil and natural gas.

Revenue rose more than 54 per cent in the second quarter to about OMR6.7bn, while total spending increased by 8.6 per cent to OMR5.9bn, according to the country’s finance ministry.

Crude oil revenue stood at OMR3.19bn, while the equivalent figure for gas was OMR1.73bn.

Oman has implemented a series of reforms to balance its budget and lower its debt, including the introduction of value-added tax last year.

It plans to use the windfall from surging oil prices to trim its public debt and boost spending on certain projects.

The nation also plans to “repurchase some sovereign bonds, repay high-cost loans and issue local sukuk for trading on the stock exchange” to cut its debt, it added in the statement.

Oil’s surge on the back of the crisis in Ukraine has pushed crude above the break-even level for almost all the Middle East’s producers, raising the prospect of significant budget surpluses for even the weakest economies if prices remain high.