01 February 2016
Muscat - Petroleum Development Oman (PDO), the Sultanate's dominant oil and gas producer, aims to invest in excess of $10 billion in a trio of signature integrated schemes that are key to sustaining the company's long-term hydrocarbon output.

All three mega ventures -- the Rabab Harweel Integrated Project (RHIP), the Yibal Khuff integrated oil and gas facility, and the Budour integrated project --are making commendable headway in their planning and implementation, according to Managing Director Raoul Restucci.

"These are very large investments, which will probably total in excess of $10 billion over the next 5-10 years," the Managing Director said.

Speaking on the sidelines of a ceremony to mark the graduation of nearly 200 young Omanis as 6G welders, Restucci noted that the Rabab Harweel Integrated Project (RHIB) in particular continued to make "impressive progress".

"Work on the power plant is very advanced, so are the foundations and the wells. The contribution of Local Community Contractors (LCCs) is also very significant. As many as 12 LCC companies are working to prepare the site. There is good progress overall, good integration, and good safety; we will deliver on target."

At Harweel in the south of Oman, PDO aims to harness part of Rabab's sour gas to inject as miscible gas to produce oil from Harweel's sour oil reservoirs. Gas will be injected at sufficient pressure to allow it to mix with the oil, thereby making it less viscous and enable it to flow to the surface. This integration of the Harweel oil and Rabab gas components is slated for completion in 2019 with peak production of 36,000 barrels of oil per day (bpd) targeted thereafter.

Rabab-Harweel, Yibal Khuff and Budour are oil and gas reservoirs located in the Greater Birba in the south of PDO's Block 6 concession -- an area that could potentially contribute nearly a third of the company's oil production in the future.

At Yibal Khuff, PDO has received shareholder approval for the simultaneously development of a number of sour oil and gas reservoirs. A significant part of the investment in the project will go towards the construction of an integrated oil and gas facility, billed as one of the largest and technically most complex ventures to be implemented by PDO. The presence of H2S in the hydrocarbons requires sizable investment in state-of-the-art sulphur removal technology.

At Budour, plans for the first-ever use of water injection in a sour oil field are being reviewed following the discovery of additional gas reservoirs in the same area.

According to Restucci, PDO is now looking for an optimal solution for the field. The company's success in identifying additional gas reserves in the field now requires that the reservoir be tested before the main project is suitably expanded, he said.

© Oman Daily Observer 2016