Japanese oil expertise to tackle energy challenges

MOU EXTENSION: Technical cooperation to support flaring reduction, produced water problems

issues, most notably the challenges posed by gas flaring and produced water. Flaring reduction is a key safety and environmental priority for the Sultanate, which is keen to reduce the carbon footprint attributed to flaring. Besides, gas recovered instead of venting can be put to valuable commercial use.

Majority government-owned Petroleum Development Oman (PDO), which accounts for much of the nation’s gas output, is pursuing an ambitious flare reduction programme across its sizable Block 6 concession.

The company has plans to recover an estimated 500,000 cubic metres / day of gas by 2019 through the implementation of flaring reduction projects in its Oil South Directorate. Similar initiatives envisaged in the Oil North Directorate will yield approximately 280,000 m3/ day of recovered gas by 2025.

Even more worrisome for Oman is the problem of produced water, which is a byproduct of oil production from a number of fields in the Sultanate. On average, around nine barrels of oilcontaminated water is produced for every barrel of oil that is pumped from certain reservoirs. Disposing of this water safely and effectively imposes a significant cost on oil companies that are saddled with this problem. Further, with produced water averaging 9-10 million barrels per day in the Sultanate — one of the highest in the GCC — the environmental and economic cost needs to be urgently tackled, say experts.

Also envisaged within the scope of the extended MoU are joint technological studies designed to evaluate the potential utilisation of Japanese technologies in tackling challenges encountered by oil companies during the stages of exploration, developmental and production of oil and gas. The potential use of nano-technology and material and advanced environmental technologies will be explored as well.

The efficacy of Japanese technologies in Enhanced Oil Recovery (EOR) will also be reviewed in helping arrest declining production from some wells as part of this cooperative arrangement.

“The extension of the MoU, we believe, will not only contribute to the advancement of Oman and Japan relations, but will also build a stronger foundation on which the activities of Japanese oil & gas companies are based,” JOGMEC added.

Oman is a key exporter of crude and LNG to Japan.