A decrease in crude oil and natural gas production led to a fall in the country’s gross domestic product (GDP) in the second quarter (Q2) of the year, said the Department of Economic Planning and Statistics.
The oil and gas sector decreased by 9.2 per cent while there was a one per cent growth in the non-oil and gas sector, according to the department. This resulted in a negative growth of the country’s GDP by 4.4 per cent in Q2, compared to the previous year.
The decline in oil and gas sector was due to a decrease of crude oil production from 111.1 thousand barrels per day in Q2 2021 to 94.5 thousand barrels per day in Q2 this year.
Natural gas production also recorded a decrease from 31.5 million cubic metres per day in Q2 2021 to 27.3 million cubic metres per day in Q2 this year.
However, the non-oil and gas sector remained positive with an increase in the subsectors such as downstream, air transport, communication, and fishery.
An increase in the downstream activities was due to increased methanol production by 20.5 per cent, from 136,921 metric tonnes in Q2 2021 to 164,926 metric tonnes in Q2 this year.
This was followed by an increase in the production of petroleum products, particularly RON90, and production of urea fertiliser, according to the department.
Meanwhile, the increase in air transport activities was in line with the rise in passenger air arrivals, from 1,261 in Q2 2021 to 33,067 in Q2 2022; and air departures, from 7,617 in Q2 2021 to 37,687 in Q2 2022, which corresponded to permission to enter and exit the country.
Meanwhile, positive development in the communications sector was supported by the increase in Internet and mobile phone subscribers by 2.5 per cent and 0.9 per cent, respectively, in response to some government, private and educational institutions still practising work-from-home policies.