Boosts hydrocarbon reserves - The discoveries are from a variety of reservoirs, depths, demonstrating the significant potential in the country
MUSCAT -- Petroleum Development Oman (PDO) has reported a number of new oil and gas discoveries, as well as the addition of 450 million barrels of oil equivalent (BoE) in new hydrocarbon reserves during 2011. This was announced by Raoul Restucci, Managing Director, PDO, at the annual media briefing yesterday, presided over by Nasser bin Khamis al Jashmi, Under-Secretary of the Ministry of Oil and Gas. Also present were members of the Majlis Ash'shura and PDO's Board of Directors.
In the greater Lekhwair area in the northeast of PDO's concession area, an exploration team made two oil discoveries close to existing oilfields; Lekwhair-724 and Mazkhour-5. Early test results are very encouraging with a combined production rate from these two wells in excess of 2,600 barrels per day (bpd), said Restucci.
"In the south of Oman, PDO exploration well Sakhiya-21 discovered oil in an intra-salt Ara stringer carbonate reservoir near the Harweel production station. The well sustained an oil flow of over 1,800 bpd during the production test. The eventual recoverable volumes from the field, including the use of miscible gas injection as a secondary recovery scheme, are expected to be over 35 million barrels of oil," he said.
Importantly, PDO's gas exploration team also had a successful year with yet another gas discovery in 2011 at Rabiha-1 in the north of PDO's concession area. The new discovery is 10 km to the southwest of the Khulud South discovery announced in 2010 and 6.5 km west of the Khulud West gas discovery revealed last year. Rabiha was one of the four wells drilled targeting unconventional gas reserves in the Haima group. The well flowed gas to the surface during a flow test, and an appraisal well is planned in 2012 to properly assess reservoir distribution and commerciality.
"Overall, these discoveries of both oil and gas come from a variety of reservoirs and depths, demonstrating the significant potential that continues to be available in the PDO concession area. As a result, PDO will continue its extensive efforts to find both new oil and new gas fields," Restucci stated. Commenting on the performance of the company during 2011, he said the high level of drilling and engineering activity had paid off and, for the fourth successive year, combined production of oil, condensate and gas has increased.
"Daily oil and condensate production in 2011 stood at 549,280 and 93,600 bpd respectively and non-associated and associated gas production at 463,000 and 85,000 barrels of oil equivalent per day respectively," Restucci stated. "PDO also achieved a successful year in terms of exploration and reservoir development with a number of new potentially significant oil and gas opportunities and reserves additions."
PDO continues its exploration emphasis and shifted to unconventional plays. Restucci highlighted the emergence of unconventional tight oil and basin centred gas opportunities. In addition, field development and recovery optimisation studies added 266 million barrels of oil reserves and 1 TCF of gas reserves (for a combined 450 million boe).
He added that the extensive inventorisation and field development work has resulted in a Reserves Replacement Ratio (RRR) of 1.26, well in excess of 2011 production, while the encouraging unconventional results are expected to underpin longer-term production opportunities after extensive appraisal, testing and maturation work.
"Thanks to industry leading EOR work, fields like Marmul, on stream for more than 30 years, were now producing at their highest ever rate, while new steam projects in Qarn Alam and miscible sour gas injection in Harweel would underpin key production delivery in 2012".
PDO also recorded its best ever year in terms of Total Recordable Case Frequency (TRCF) safety performance and has now achieved 450 million km without a work related road fatality. Meanwhile, PDO signed yesterday a $35 million five-year contract with Al Haditha Oilfield Services Company to provide flowline replacement services.
The Managing Director said at the signing ceremony that the value of the contract will increase according to the scope of work Al Haditha can cover. This contract comes as part of our "In Country Value" strategy, that aims to support SLCC companies, and grow and develop products and services by Omani companies.
© Oman Daily Observer 2012
