PDO in 2018

Oil and Gas - - CONTENT -

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.

The an­nounce­ment came at the an­nual Min­istry of Oil and Gas Me­dia Brief­ing in which the com­pany also re­ported on a string of achieve­ments, in­clud­ing its best-ever safety per­for­mance, record in­vest­ment in lo­cal com­pa­nies and the cre­ation of 14,146 job op­por­tu­ni­ties for Oma­nis in 2017.

In to­tal, five wells have re­cently been drilled in the field and all have en­coun­tered gas. One is al­ready pro­duc­ing and an­other will be hooked up shortly. Work is also pro­gress­ing on two fur­ther appraisal wells, with plans for the ex­pan­sion of pro­duc­tion in­fra­struc­ture. Ad­di­tion­ally, ex­plo­ration is con­tin­u­ing in nearby prospects.

PDO Man­ag­ing Di­rec­tor Raoul Res­tucci said: “This is an ex­cit­ing find which will pro­vide a boost for eco­nomic growth in Oman and help meet ris­ing gas de­mand from res­i­den­tial, com­mer­cial and in­dus­trial cus­tomers.

“Once again, our Ex­plo­ration Di­rec­torate has per­formed ad­mirably in chal­leng­ing con­di­tions to iden­tify, dis­cover and ap­praise a ma­jor hy­dro­car­bon find which will make a sub­stan­tial con­tri­bu­tion to Oman’s sus­tain­able de­vel­op­ment.

This year, we are cel­e­brat­ing the 40th an­niver­sary of PDO gas pro­duc­tion and this is a fit­ting way to mark that mile­stone.”

Ex­ploratory drilling has taken place at depths of 5,000 me­tres. The Barik and Miqrat reser­voirs tested at com­mer­cial flow rates of up to 1.2 mil­lion cu­bic me­tres per day af­ter frac­tur­ing. The dis­cov­ery fol­lows PDO’s ac­qui­si­tion of high res­o­lu­tion 3D Wide Az­imuth seis­mic data in the area in 2015. Fur­ther prospects are also be­ing drilled.

Mabrouk North East builds on the dis­cov­ery made in March 2013, when PDO an­nounced an­other sig­nif­i­cant find at Mabrouk Deep, some 40km west of Saih Rawl. Res­tucci added: “We have a very at­trac­tive port­fo­lio which keeps us very ac­tive, with large seis­mic pro­grammes and ex­ten­sive ex­plo­ration drilling.”

The com­pany op­er­ates gas fields and pro­cess­ing plants ex­clu­sively on be­half of the Omani gov­ern­ment. The av­er­age Gov­ern­ment daily gas sup­ply dur­ing 2017 was 76.64 mil­lion m 3 /d, lower than the ini­tially tar­geted level of 83 mil­lion m 3 /d due to the start of 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/nonOPEC 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 work-over hoist fleet. It also drilled 626 oil and gas pro­duc­tion and ex­plo­ration wells re­duc­ing the av­er­age well cost by 4% and the rig move cost by 12% 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.”

On the safety front, the Com­pany recorded a record per­for­mance with

Lost Time In­jury Fre­quency fall­ing 0.20 per mil­lion man­hours, al­beit trag­i­cally with one work-re­lated fa­tal­ity. It also recorded a new road safety mile­stone of 500 mil­lion kilo­me­tres driven by staff and con­trac­tors with­out a fa­tal­ity, and with a 40% fall in Se­ri­ous Mo­tor Ve­hi­cle In­ci­dents. Res­tucci com­mented: “Our Jour­ney Man­age­ment Con­trol Cen­tre, which mon­i­tors a fleet of more than

8,500 ve­hi­cles, has brought about a step change in safer driv­ing since it was opened in 2016 with a 97% fall in the av­er­age num­ber of vi­o­la­tions per ve­hi­cle.

“Safety re­mains our over­ar­ch­ing pri­or­ity and we have made good progress through greater front­line su­per­vi­sion, tai­lored train­ing, stricter con­se­quence man­age­ment, and en­hanced haz­ard and risk iden­ti­fi­ca­tion in our op­er­a­tions. How­ever, there is still much work to do in se­cur­ing our Goal Zero as­pi­ra­tion of no harm to peo­ple, en­vi­ron­ment or as­sets. We must do bet­ter to en­sure all staff, con­trac­tors and sub-con­trac­tors alike, re­turn to their loved ones at the end of ev­ery work day.” 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 m 3 /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.

Res­tucci high­lighted sig­nif­i­cant cor­po­rate so­cial re­spon­si­bil­ity ad­vances last year. These in­cluded the cre­ation of 14,146 em­ploy­ment, train­ing, re­de­ploy­ment 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.

Mean­while, to boost near-term cash­flow, PDO made more than $400 mil­lion in fur­ther cu­mu­la­tive op­er­a­tional and cap­i­tal ex­pen­di­ture sav­ings through project re-phas­ing, closer col­lab­o­ra­tion with con­trac­tors and a fur­ther com­pre­hen­sive re­view and chal­lenge of costs across the or­gan­i­sa­tion. The Com­pany will con­tinue to drive cost re­duc­tion through its Lean busi­ness ef­fi­ciency pro­gramme.

Look­ing for­ward, Res­tucci said: “Ir­re­spec­tive of pro­duc­tion agree­ments to sta­bilise oil prices, 2018 will re­quire us to con­tinue to fo­cus on be­com­ing more ef­fi­cient, ag­ile and pro­duc­tive in all our key busi­ness ac­tiv­i­ties. This will mean iden­ti­fy­ing sav­ings and cost re­duc­tions while de­liv­er­ing growth, ex­cel­lence and sus­tain­able value cre­ation for Oman and our share­hold­ers. We will also con­tinue our grad­ual tran­si­tion to be­com­ing a fully-fledged en­ergy com­pany, with a greater fo­cus on re­new­ables, and se­cur­ing greater align­ment be­tween academia and in­dus­try on re­search and de­vel­op­ment.

“These are rapidly chang­ing times for our in­dus­try with cli­mate change re­al­i­ties, au­to­ma­tion, dig­i­til­i­sa­tion and ar­ti­fi­cial in­tel­li­gence trans­form­ing the way we do things. How­ever, I am con­fi­dent that these changes also of­fer us a great op­por­tu­nity to work more safely, pro­duc­tively and re­spon­si­bly.”

Newspapers in English

Newspapers from Oman

© PressReader. All rights reserved.