30 June 2019
Oman has commissioned one of its largest oil projects that will tap massive desert hydrocarbon deposits in the South, a newspaper in the Sultanate said on Sunday.

State-owned Petroleum Development Oman (PDO) has started production in the Rabab Harweel Integrated Project (RHIP) and more wells will come on stream in the next few days, the Arabic language daily Al-Watan said, citing a PDO source.

"The project has gone into actual production with the operation of three wells...more wells will be brought on stream in the next days," the source said.

In April, PDO said it has managed to cut the project's costs by around 20 percent from nearly $4.7 billion to $3.7 billion.

RHIP was launched in 2014 to exploit hydrocarbon deposits in the heart of the desert in South Oman. It comprises sour gas processing facilities and associated gathering and injection systems and export pipelines.

Al-Watan said the project has an output capacity of around 50,000 barrels per day (bpd) of crude and 175 million cubic feet of sweet gas.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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