Given the twin facts that Oman has only around five billion barrels of estimated proved oil reserves (barely the 22 nd largest in the world) but is still dependent on the hydrocarbons sector for over 80 per cent of its national budget revenues, the ongoing oil price war is posing some very big problems for the Sultanate. Even before the outbreak of outright hostilities between Saudi Arabia, Russia, and the U.S. began, Oman had a budget breakeven price per barrel of Brent of over US$85 and this is going higher by the day. As it stands, according to legal sources in Abu Dhabi spoken to by last week, the Sultanate needs to raise at least US$7 billion very quickly just to keep the budget from falling off a cliff, and nearer US$10 billion to keep rolling funding going for key projects, including the flagship Duqm programme. “The key […]