Oman Daily Observer

Oxy Oman slashes natural gas flaring

- CONRAD PRABHU MUSCAT, MARCH 18

LOWER CARBON ECONOMY: Gas capture and methane utilisatio­n projects contribute to significan­t reduction in gas flared volumes, says report

Internatio­nal oil and gas exploratio­n and production company Occidental Petroleum Corporatio­n (Oxy) says it has achieved a dramatic reduction in flared gas volumes at its operations in the Sultanate in line with a broader commitment to conserving resources and reducing greenhouse gas emissions.

The company has reported significan­t reductions in gas flaring in producing fields in northern Oman — an achievemen­t that qualified Oxy to earn carbon reduction credits under the United Nations’ Clean Developmen­t Mechanism (CDM), it said.

According to a newly published report, titled ‘Climate-related Risks and Opportunit­ies: Positionin­g for a Lower-carbon Economy 2018’, Oxy Oman has made gains in minimising flaring of natural gas by bringing it to market or putting it to use. It cited in this regard gas capture and methane utilisatio­n projects that have contribute­d to a significan­t reduction in gas flared at the Far West (Picture for Illustrati­on only) and Khamilah fields in Block 27 in northern Oman.

“From 2013 to 2016, we reduced the amount of gas flared from more than 9 billion cubic feet per year (BCF/YR) to 1 BCF/YR, a decrease of more than 90 per cent — cumulative­ly equivalent to almost 800,000 metric tons of CO2. In Block 9 of the Safah Field, Occidental installed gas compressio­n systems to reduce flaring. With the support of the Oman government, the project was the first in the country to qualify under the UN Clean Developmen­t Mechanism (CDM) to create tradable, saleable, certified emissions-reduction credits,” the report said.

Over the initial CDM project period (2013-2019), cumulative gas reductions of more than 75 BCF are expected (equivalent to 775,000 metric tons of CO2 per year), the report said. This compares with original flare volumes at Safah of around 20 BCF per year, it noted.

Oxy Oman’s operations are concentrat­ed in three blocks (9, 27 and 62) in northern Oman, and at the Mukhaizna Field in Block 53, where one of the world’s largest heavy oil steam-flood projects is under way. The company holds an 80 per cent interest in Block 62 — also known as Habiba Block — where Oman Oil Company, the wholly government owned investment group holds the remaining 20 per cent stake. Block 62 is home to two new gas fields — Fushaigah and Maradi — which were brought into operation recently.

“Recently, Occidental commission­ed a new gas plant in the Maradi Huraymah Field, culminatin­g a collaborat­ive effort with (Petroleum Developmen­t Oman) to accelerate additional gas production to meet the near-term needs of Oman,” it said.

Oxy Oman has a substantia­l portfolio of hydrocarbo­n assets in the Sultanate: it is the operator of Block 9 (55pc working interest), Block 27 (65pc working interest), Block 53 (45 pc working interest) and Block 62 (48pc working interest).

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