Khulud tight gas pilot to shape strategy for unconventional gas exploration and development
MUSCAT -- Petroleum Development Oman (PDO) is moving aggressively to explore and develop unconventional gas accumulations within its Block 6 concession -- an effort, while potentially promising, is fraught with immense challenges, according to its managing director. Raoul Restucci (pictured) said the majority government-owned company's ambitious foray into unconventional gas plays is showcased in its ongoing efforts to appraise and develop the Khulud tight gas fields in the northern part of its concession. Speaking at the opening of the International Unconventional Gas Conference & Exhibition that began at the Ritz Carlton Al Bustan Palace yesterday, Restucci described the Khulud project as PDO's first tight gas pilot that could likely "shape" the course of its strategy to develop its unconventional gas resources.
"Since 2000 our exploration teams have embarked on an extensive appraisal and commercialisation programme targeting tight gas resources in the north of our concession, and more specifically Khulud where we have so far 10 delineation wells and our first horizontal well as part of the initial campaign. This is the first tight gas pilot that PDO is pursuing which could likely shape the scale and scope of PDO's involvement in unconventional plays," he said. Unlocking the potential of such accumulations typically entail huge challenges posed by the extreme tightness of the reservoir rock, target reservoir depths of up to 5,000 metres, and prevailing temperatures of around 180 degrees centigrade. Compounding these challenges is the sour nature of the gas, collectively making the project "complex and testing by most industry standards", Restucci noted.
Earlier, Oil and Gas Ministry Under-Secretary Salim bin Nasser al Aufi formally inaugurated the three-day forum, which was organised by the Ministry in collaboration with PDO, Oman Society for Petroleum Services, International Gas Union (IGU) and events management firm Knowledge Expansion. PDO, the Managing Director stressed, was continuing to make extensive efforts to deliver unconventional gas in a cost-efficient and sustainable manner. This ongoing effort would not only help meet growing customer demand for natural gas, but also generate significant socioeconomic benefits to the entire nation, he stated. "We envisage drilling hundreds of wells in the next decade and beyond to understand and unlock the prospective potential (of unconventional gas accumulations) in our concession, and we will work concurrently to ensure the (involvement) of Omani goods, services and experts, as we had championed in the recent (In-Country Value (ICV) conference alongside the government, other operators and contractors."
Raoul Restucci also announced the establishment of an integrated, multi disciplinary team to commercialise and mature tight gas resources. The company's exploration teams, along with its technology and field engineers, "are working under one roof to find the most efficient path to monetisation" of these resources, he said. Furthermore, given the need for long-term testing to prove the commerciality of these tight gas accumulations, an early production system has also been recently commissioned to de-risk and right-size future cluster developments, the Managing Director said. In addition to its tight gas programme, PDO has also drilled four wells across the northern part of its concession targeting centre basin gas plays, said Restucci.
Three of these wells yielded gas, albeit in very tight conditions and in limited commercial quantities. But with the experience and expertise gained through the Khulud tight gas project, the ongoing seismic programme covering 8,000 sq kilometres, and other key improvements, the company has the confidence to press ahead with its quest to unearth the potential of these resources, he added. Yesterday's opening session also featured keynote presentations by Menahi al Anzi of Kuwait Oil Corporation; David Dalton, Middle East Regional President -- BP; and Jerome Ferrier, President -- International Gas Union (IGU).
(OEPPA Business Development Dept)
© Oman Daily Observer 2014
