PDO sets new production record of 1.293m boepd
FROM P13
“The recessionary climate has meant established ways of working have required a paradigm shift in mindset to significantly improve capital efficiency and deliver competitive projects. However, the ability of our staff and contractors to adapt and work more collaboratively has enabled us to exceed targets across the board.”
PDO confirmed it was well placed to develop growth plans to further raise our plateau levels and create more value for Oman when the production restrictions are lifted.
“With our partners at Shell, we have identified 46 opportunities for incremental development that could yield in excess of 700 million barrels of recoverable reserves and raise our production plateau.”
In 2016, PDO’s Exploration Directorate sought new sources of low unit technical cost hydrocarbons to create value and meet customer needs. It exceeded its 2016 delivery targets, booking a total of 86.4 million barrels of oil, 0.45 trillion cubic feet (Tcf) of non-associated gas and 24.3 million barrels of condensate as commercial contingent resource (CCR) volumes. Major oil discoveries of the year included the Shammar play opening, which unlocked 40 million barrels of CCR volumes from the shallow, highpermeability reservoir in the Lekhwair field.
The efforts exploration and production were underpinned by an intensification of well activities, with 644 oil and gas production and exploration wells drilled, 33 above plan and a 12 per cent increase on 2015. There were also 19,600 well interventions, a 49 per cent increase on the 2015 total of 13,190 activities with a similar well entry and workover fleet.
Despite the heavier workload, the Well Engineering Directorate realised considerable savings in well delivery against the approved budget, through a multitude of Lean business efficiency projects and innovative contracting strategies. The cost per metre drilled fell 8 per cent from 2015, the lowest since 2010, with well delivery 3 per cent under budget despite being 5 per cent ahead of plan. Beyond cost reductions, this effort contributed to also achieving 10 per cent extra oil than planned from new wells.
PDO achieved the majority of its corporate project delivery milestones on or ahead of plan, and all were delivered within the year. Three major projects — Yibal depletion compression phase 3, Mabrouk phase 2, and Ghaba North gas oil gravity drainage were delivered successfully.
The Company disclosed that the Rabab Harweel integrated project — the largest capital project in PDO with a reserve add of more than 500 million boe — is on schedule, while the Yibal Khuff project, which involves the simultaneous development of a number of sour oil and gas reservoirs, is ahead of schedule with construction beginning last year.