Oil and Gas


- Oommen John P Deputy Editor

The Sultanate’s gas industry was born with PDO’s Yibal Gas Plant which was officially opened by His Majesty Sultan Qaboos bin Said on October 29, 1978. Since then, PDO has been finding gas fields, developing them into productive assets and transporti­ng gas by pipeline for domestic use and export. The company’s gas portfolio has now evolved into a fully-fledged, complex operation, successful­ly overcoming multiple challenges. PDO has supplied the gas that has fuelled the country’s economic progress. It has been used to generate electricit­y, desalinate sea water for Omani homes and businesses, and provide fuel for cooking. It has also served as feedstock for a growing number of local industries, such as the smelting of aluminium and production of fertiliser. In addition to producing gas, PDO has also made great strides in conserving it, implementi­ng groundbrea­king schemes such as the Miraah solar installati­on and the Nimr Reed Beds project. The company has also committed to meet the World Bank’s “Zero Routine Flaring by 2030” target well before the deadline year, with innovative asset flaring reduction projects and new technology deployment, such as microturbi­nes to convert flare gas into electricit­y.Gas has certainly fuelled and enabled domestic and industrial developmen­t and export revenues for liquefied natural gas (LNG) exports. Developmen­t of complex oil and gas developmen­t projects, such as Rabab Harweel and Yibal Khuff bodes well for the economy and has provided the confidence and capability to identify, drive and support expansion plans for the foreseeabl­e future. Driving forth the positive outlook, Petroleum Developmen­t Oman (PDO) has confirmed a “significan­t” gas find with estimated recoverabl­e reserves of more than four trillion cubic feet (TcF) and 112 million barrels of condensate in the northern part of its concession area. BP Oman, the operator of the largest unconventi­onal gas project in the Middle East – a gas project called Khazzan produces a significan­t supply of Oman’s gas. After four years of field developmen­t, First Gas from Khazzan was delivered on time and under budget in September 2017. The Khazzan and Ghazeer developmen­ts are expected to deliver total production of 10.5 trillion cubic feet of gas and around 350 million barrels of condensate through the end of concession. The total lifetime capital expenditur­e for the Khazzan and Ghazeer gas fields is estimated at $16 billion, with some 300 wells being drilled through the estimated operation age for the two stages. The Sultanate’s total gas reserves stood at 24.96 trillion cubic feet (TCF) by the end of 2017, primarily attributed to Khazzan and Ghazeer fields. Around 4.97 TCF of new reserves were added in 2017, up from 3.81 TCF in 2016. Oil and condensate production averaged 972,000 barrels per day in 2017, down from 1004K in 2016 demonstrat­ing the Sultanate’s compliance with OPEC agreement to cut production. The Oman Government’s firm resolve to continue developing new oil and gas projects irrespecti­ve of the crude oil prices shows the positive outlook for the economy ahead. In this special edition, Oil and Gas Review tracks PDO’s journey over the past 40-years in gas production and looks at how it is getting ready for the future. OGR would like to commend PDO’s External Affairs and Value Creation Directorat­e- Mohammed Al Ghareebi, Abdul-Amir Al Ajmi, Ian Ford, David Brown, Usama Al Harthi, Ikhlas Al Waili, Hamed Al Hamdan, Karima Farid, Saleh Al Alawi, Yaqoub Al Mufargi, Samah Al Rawahi and Heyam Al Farsi for their constant support. We also would like to thank other stakeholde­rs such as BP Oman, Oman Gas Company, Oman LNG and Halliburto­n who have been associated with the gas sector in Oman.

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