PDO announces new gas find

Muscat - 

Petroleum Development Oman (PDO) has confirmed a ‘significant’ gas find with estimated recoverable reserves of more than 4tn cubic feet and 112mn barrels of condensate in the northern part of its concession area in the sultanate.

The announcement by PDO came at the annual media briefing organised by the Ministry of Oil and Gas on Monday at the Oman Institute of Oil and Gas. PDO 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.

Speaking at the media briefing, 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.”

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.

PDO operates gas fields and processing plants exclusively on behalf of the Omani government. The average government daily gas supply during 2017 was 76.64mn cubic meters per day, lower than the initially targeted level of 83mn cubic meters per day 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.

Restucci said 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.

The company’s average oil production was 582,196 barrels per day in 2017.

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

He added, “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.”

PDO also reported that the Rabab Harweel integrated project – the largest project in its history with a reserve add of more than 500mn barrels of oil equivalent – is well ahead of plan 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 US$800mn in capital expenditure savings has been secured on both. In 2017, PDO awarded contracts worth more than US$5.19bn to nationally registered firms, the highest sum in its history.

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