New discovery boosts PDO gas, condensate reserves

BP’S Khazzan field. Throughout, PDO effectively met the gas demand for all its customers despite increased requirement quantities for Oman LNG.

Notwithstanding a number of operational challenges in 2017, PDO also showed good compliance with government targets arising from the Opec/non-opec agreement to limit oil production, while compensating at short notice for any shortfalls in total country supply. Average oil production was 582,196 barrels per day (bpd).

As an example of the step change in efficiency, the Company’s Well Engineering Directorate carried out more than 21,000 well interventions, compared to 13,000 well entries in 2013 with the same rig and workover hoist fleet. It also drilled 626 oil and gas production and exploration wells reducing the average well cost by 4 per cent and the rig move cost by 12 per cent compared to 2016 through better collaboration and rig sequence optimisation.

Restucci said: “Contingent on Opec constraints, we are maintaining momentum to be ready to deliver in excess of 650,000 bpd. The Company is more efficient than ever and we have raised performance across the key parts of our value chain.”

PDO reported that the Rabab Harweel integrated project — the largest projects in its history with a reserve add of more than 500 million barrels of oil equivalent — is well ahead of plan and budget, and good progress is being made at its second mega project at Yibal Khuff, the most complex venture it has ever undertaken. A total of almost $800 million in capital expenditure savings have been secured on both.

The Company will continue to place a greater focus on renewables and energy and water management. The giant Miraah solar energy installation at Amal, which it is developing with partner Glasspoint Solar, is in daily operation and meeting its targets for steam output for use in thermal enhanced oil recovery. Construction is progressing on schedule with another eight blocks on track to be completed in early 2019, on top of the four which were commissioned in December 2017.

PDO is also expanding its awardingwinning Nimr Water Treatment Plant which currently treats 115,000 m3/d of produced oilfield water using reed beds and, with partner Bauer Nimr, is making progress on a biosaline agriculture trial. Plant growth from a number of crops has been promising with the potential for commercial application, and the possibility of biomass and oil seed production.

During his presentation to the Media Briefing event to national and international journalists at the Oman Institute of Oil and Gas, Restucci highlighted corporate social responsibility advances last year. These included the creation of 14,146 jobs, training, re-deployment and transfer opportunities for Omanis with PDO contractors and non-oil sectors, such as hospitality, fashion and digital media. PDO also awarded contracts worth more than $5.19 billion to nationally registered firms, the highest sum in its history, and backed a series of new Omani factories and workshops supplying vital parts, equipment and engineering services to the oil and gas industry.

The Company committed to 35 new social investment projects, totalling more than $5.5 million, which will have tangible impacts on the quality of life of thousands of people living in our concession area and beyond.

These include the provision of clean drinking water facilities, safe public spaces, and research and learning opportunities. Further support was provided through miscellaneous grants and donations.