US company struggling to increase production at Mukhaizna project
Occidental Petroleum of the US is having to work hard to increase output from Oman's Mukhaizna enhanced oil recovery project as it works to deal with a number of technical problems.
Output is now running at about 20,000 barrels per day compared to a projected 30,000 bpd.
Production increased to 23,000 bpd last year but soon slipped back to 20,000 bpd, Omani officials said.
Oxy first experienced rig problems and has had to face a number of technical problems, including mud blowouts, which have hampered efforts to raise output.
''They have now sorted out their rig problems,'' an Omani company executive said, although he added that they are still working on issues with the application of their EOR technology.
However, Ziad Khamis Siyabi, director general of the Omani Oil Ministry's development and production department, said he was optimistic Oxy will overcome problems and meet projected output targets.
''I am confident they will exit the year 2008 with a production of 50,000 barrels per day,'' he said. "I am happy with Occidental.''
He said Oxy will be able to lift output to 150,000 bpd in 2012 as projected.
Occidental took over operatorship from Shell-led Petroleum Development Oman (PDO) in 2005.
Oxy and partners are investing $3 billion on Mukhaizna, using EOR and steam-flooding to help boost output.
Mukhaizna holds an estimated 2 billion barrels of oil-in-place and Siyabi said 50% of the reserves can been recovered using EOR techniques.
Oxy, the second-largest crude producer in Oman after PDO, is also pumping about 65,000 bpd from blocks 9 and 27.
Indonesia's Medco Energi is producing about 20,000 bpd from a cluster of 18 small fields in the Nimr-Karim area of southern Oman and is working to increase output to 30,000bpd by 2012.
Siyabi said Oman's total oil production is projected to fall to around 690,000 bpd this year, down from 730,000 bpd in 2007.
PDO accounts for about 80% of Oman's crude oil production.
The rest of Oman crude output comes from Blocks 5 and Block 7.
By Nassir Shirkhani
© Upstream 2008
