Im­ports to con­tinue

Times of Oman - - MAR­KET -

The to­tal pro­duc­tion of nat­u­ral gas, ac­cord­ing to Eng. Al Aufi, is es­ti­mated at 105 mil­lion cu­bic me­tres and the Khaz­zan project will sup­ply one-third of the pro­duc­tion. Eng Al Aufi also noted that the im­port of nat­u­ral gas from Dol­phin Gas will con­tinue as it is sup­ply­ing to in­dus­trial units in So­har. The gov­ern­ment is not in a po­si­tion to sell gas at a cheap price now. Although sev­eral in­vestors are in­ter­ested in setting up gas-based in­dus­tries in Oman, they need gas at a lower rate, which is a hin­der­ing fac­tor for pro­ceed­ing with their plan. The gov­ern­ment is not in a po­si­tion to lower prices of nat­u­ral gas.

The un­der­sec­re­tary also noted that nat­u­ral gas sup­ply to Duqm will start in 2019 and the vol­ume is es­ti­mated at 7 mil­lion cu­bic me­ters a day. How­ever, this can be in­creased to 28 mil­lion cu­bic me­tres a day.

Re­fer­ring to ten­der­ing of four blocks, he said one of the four blocks has tight gas re­serves.

The Khaz­zan tight gas re­serves lie at depths of up to five kilo­me­tres in nar­row bands of ex­tremely hard, dense rock. Th­ese com­plex and chal­leng­ing con­di­tions re­quire spe­cialised drilling equip­ment, the pre­cise drilling of both ver­ti­cal and hor­i­zon­tal wells, and well stim­u­la­tion to free the gas.

The pro­duc­tion shar­ing agree­ment for Block 61, which con­tains the Khaz­zan field, was first signed in 2007 and was amended in 2013 and ex­tended in 2016. An ap­praisal con­ducted over the 2007-2013 pe­riod con­firmed the ex­is­tence of sig­nif­i­cant tight gas re­sources that could be de­vel­oped through the ap­pli­ca­tion of BP’s ex­ten­sive un­con­ven­tional gas ex­pe­ri­ence and tech­nol­ogy.

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