Oman LNG revenues up 60 per cent as output, prices rise
Revenues of Oman Liquefied Natural Gas Company (Oman LNG) reached $3.50 billion by the end of 2018 from $2.19 billion at the end of 2017, a rise of 60 per cent, thanks to both improved oil prices and additional gas volumes.
The net income of the company by the end of 2018, after deduction of tax, increased by 68 per cent to reach $1.79 billion compared to $642 million by the end of 2017.
In its annual report for 2018, the company affirmed that despite the growing operational activities and commercial businesses, the company managed to reduce its operational expenses by $9 million by the end of 2018 compared to the approved budget by the company, thanks to a series of cost optimisation initiatives adopted by the company. The company’s contribution to taxes stood at $170 million in 2018.
The company’s annual report indicated that the company’s LNG production rate hit 10.4 million tonnes per annum (mtpa) compared to 8.60 million tonnes by the end of 2017. The company’s production of intensive natural gas derivatives 239,367 tonnes.
In terms of shipping and marketing, the total number of LNG cargoes loaded to the company’s expanding network of destinations around the world by the end of 2018 stood at 162. The shipment consisted of 111 cargoes of Oman LNG and 51 cargoes of Qalhat LNG while the total cargoes of compressed natural gas derivatives stood at 36.
In January 2018, the 7-year Sales and Purchase Agreement (SPA) with BP Singapore, which supplies 1.1 mtpa of LNG, was commissioned. As safety vigilance breeds excellence, the company continues to break safety milestones, which stood at nearly 30 million man-hours worked without Lost-Time Injury (LTI) and over 27 million kilometres driven without an LTI by year-end.
The total revenues of Qalhat LNG stood at $1.23 billion during 2018 while shipping optimisation achieved cost reductions of $23 million.
Dr. Mohammed bin Hamad Al Rumhy, Minister of Oil and Gas, Chairman of the Board of Directors of Oman LNG said, “Our company entered 2018 with a resolve to disengage from the deflationary mindset embedded across the industry and to fully embrace the return of modest growth. And so, one year on, it is no complacency to reflect with satisfaction on how much that resolve has been rewarded.
Even more encouraging, however, are the production and safety records we continue to deliver, and that is where true expansion now lies. This spells brighter prospects for our company and its stakeholders, our most important stakeholder being, of course, the country we serve.
He added, “As each year passes with an unbroken safety record, the pressure to not fail escalates. The figures at year-end are no less than phenomenal, with almost 30 million man-hours without Lost Time Injury (LTI) and that in a context of substantially increased production. We can be proud to have sealed for another year our reputation as a company, that places a no-compromise value on personal safety and asset integrity.
Initiatives such as the Behaviour- Based Safety Programme are what sustains Oman LNG’s impeccable safety culture by discouraging the normalisation of risk. Safety remains crucial to our industry”.