1218 MINERALS YEARBOOK, 1978-79 
 
provided a substantial export market. Ap- proximately 20% of iron and steel
produced proximately 30% of cement production, in Lebanon was exported. Steel
exports valued at $25 million, was exported both were valued at around $18
million per year. years In 1978 the Societe des Ciments Consolidated Steel
Lebanon SAL located Libanais plant capacity was expanded from in Byblos-Amchit,
north of Beirut, operated 1.2 million tons per year to 1.8 million tons a
bar, section, and rolling mill, with an per year by the addition of a 1,500-ton-per-
annual capacity of 240,000 tons of rolled day rotary kiln. The plant operated
by steel:The Lebanon Steel Mill Co. operated a Cimenterie Nationale S.A.L.
was expanded steel furnace and bar mill with a capacity of from 500,000 tons
per year to 1 million tons 100,000 tons per year, and Societe Nationale per
year, and expansion was planned for the des Tubes S.A.L. operated a tube
and pipe third plant, operated by Societe Libanais mill in Dekwaneh, near
Beirut. 
des Ciments, from 50,000 tons per year to Lebanon had reserves of low-grade
iron 160,000 tons per year by 1980. ore in the north, and phosphate deposits
in 
Production of iron and steel remained the south, which remained unexploited.
about the same throughout 1978-79. ApOMAN 
 
 Important developments in the minerals sector occurred during 1978-79 in
Oman. New oil discoveries seemed likely to reverse the trend of declining
production, while major steps were taken in the development of copper deposits,
natural gas, the steel industry, and cement manufacturing. 
 Petroleum production continued to be the base of Oman's economy, constituting
nearly 90% of Government revenues and 60% of the gross national product (GNP).
Crude oil accounted for 95% of Oman's total exports, and contributed to the
overall balance of payments surplus of $133.7 millionl2 in 1978 and $328.2
million in 1979. The Government budget moved from a $100 million deficit
in 1978, made up mostly by loans and grants from Saudi Arabia and the United
Arab Emirates, to a $202 million budgetary surplus in 1979. Future revenues
were to be derived from further petroleum development, utilization of natural
gas reserves, development of northern copper deposits, a growing cement and
steel industry, and possibly gypsum, limestone, and marble quarrying. 
 Since 1976, when oil production averaged 366,000 barrels per day, oil production
in Oman has declined steadily. Production dropped from 340,000 barrels per
day in 1977 to 314,000 barrels per day in 1978 and 
295,000 barrels per day in 1979. Almost all Omani crude was exported, Japan
(63.6%), United States (13.2%), Western Europe (18.4), Brazil (1.2%), and
other (3.6%). Japan's share increased from 57% in 1978 to 64% in 1979, while
the U.S. share declined slightly from 15% to 13%. Although not an OPEC country,
Oman has generally followed the pricing policies of that organization. 
The official selling price of Omani crude throughout 1978 was a modest $13
per barrel. By December of 1979, that price had risen to $28 per barrel.
Petroleum Development (Oman) Ltd., the only petroleum producer, was owned
60% by the Government, 34% by Shell, 4% by Compagnie Française
des
Petroles (CFP), and 2% by Participations and Explorations Corps. (Partex)
(Portugal). 
 New discoveries of oil in 1978-79 showed promise for reversing the decline
in production. While early oilfields were located in the northern Fahud area,
exploration further south near Amal and Marmul turned up large quantities
of medium- and heavygrade crude. Soon after PDO announced plans in 1978 to
ship the heavy crude out of a southern coastal terminal, other finds of higher
quality 30' gravity oil were made nearby, allowing onfield blending. The
mix was sufficiently light to be shipped north and join the Qarn Alam northern
pipeline export system. The finds continued into 1979, when light crude was
discovered in Jalmud, northeast of Marmul, and heavy crude in Runib, nearby.
Again, mixing allowed more convenient transport north. 
 The southern reserves led to plans for a pipeline running from these Dhofar
oilfields to Qarn Alam, where it would link to the main pipeline running
to the Mina-al-Fahal terminal. Output of the pipeline, with all oilfields
linked, was to total 100,000 barrels per day. Total project cost was estimated
at $500 million. 
 In the Butabul region, near the Saudi Arabian border, the Essences et Lubrifiants
de France (ELF) (48%), Sumitoro Metal Mining Co. Ltd. (SUMITOMO) (32%), and
Wintershall A.G. (20%) consortium also struck oil. Flows of 12,000 barrels
per day of